May 7, 2023
New Delhi, India
NSE’s Proposal to Extend Trading Hours Rejected by SEBI
During an analyst call, National Stock Exchange (NSE) MD & CEO, Ashishkumar Chauhan, disclosed that the Securities and Exchange Board of India (SEBI) has turned down NSE’s proposal to extend trading hours. The proposal, which aimed to gradually extend trading hours in phases, has been shelved for the time being.
Background: Proposal to Extend Trading Hours
Reports surfaced in February that NSE’s proposal to extend trading hours for index futures had received preliminary approval from the Association of National Exchange Members of India (ANMI). The plan outlined a phased approach, starting with index F&O trading extended until 9 PM, and eventually extending cash market trading hours until 5 PM.
Broker Feedback Lacking
Chauhan noted that despite efforts, stock brokers failed to provide the feedback sought by the regulator regarding the proposed extension of trading hours. Consequently, SEBI decided against implementing the extended trading timeframe.
Q4 Results and Market Developments
Despite the setback in trading hour extensions, NSE reported significant growth in its Q4 results. Net profit surged by 55% compared to the previous year, while operating revenue saw a substantial increase of 34%, reaching ₹4,625 crore. As part of its financial strategy, NSE announced issuing four bonus shares for every one held and declared a dividend of ₹90 per share.
Future Outlook
While NSE’s recent financial performance reflects its resilience and strength in the market, the rejection of the trading hour extension proposal indicates regulatory caution. Despite the rejection, NSE remains optimistic about its future prospects and continues to explore avenues for growth and innovation within the existing market framework.
Conclusion
NSE’s bid to extend trading hours has hit a roadblock with SEBI’s rejection of the proposal. Despite this setback, NSE’s strong Q4 results underscore its financial robustness and strategic vision. As the market landscape evolves, NSE will continue to adapt and innovate to meet the needs of investors and stakeholders while adhering to regulatory guidelines.
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