Why NSE Really Wants To Change Stock Market Timings?

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Recently NSE has sent a plan to the Securities and Exchange Board of India (SEBI) with a proposal to extend the trading hours by 9 PM of Night which could be extended till 11:30 PM.

According to news reports, there will be 2 trading sessions once SEBI permits NSE to go ahead.

The morning trading session as usual will be held from 9:15 AM to 3:30 PM and then the Evening session will start at 6 PM which will last till 9 PM for equities and 11:30 PM for F&O.

One possible reason for changing the working hours of the Indian stock market could be that Indian traders make their trading decisions based on the performance of SGX Nifty.

The NSE (National Stock Exchange) aims to discourage traders from looking at the stock markets of other countries for decision-making and wants traders to focus solely on the Indian market while making their trading decisions.

According to NSE’s letter, This extension of trading hours will also help traders to react and prepare themselves for geopolitical and economic events that impact India’s stock market directly or indirectly.

One of the logic for holding an evening session is that the current trading hours pose a significant challenge for many traders, especially part-time traders. Part-time traders typically work full-time jobs or manage their businesses during the day and only have time for trading in the evening.

So these part-time trades can use this opportunity for trading.NSE too will gain a new client base.
If SEBI approves NSE’s proposal, then it will become the second-longest operating exchange in the world. With new opportunities, there will be challenges for broking firms, and depositories.

First, let’s talk about the NSE (National Stock Exchange). NSE will also face challenges with extended trading hours. Since trading is now primarily conducted online, everything relies on the internet and servers.

Therefore, NSEs have to make sure that the systems they use can handle such a massive trading load. NSE should also release details about the load factors they have tested these systems against.

Next are the brokers. Brokers will also need to make changes to their apps and administrative systems.

They will have to increase their workforce, including relationship managers, research teams, and support teams. In case any issues arise with the app, they will need to keep their tech teams prepared, which will be a significant challenge for brokers.

Now, let’s move on to traders. This will also pose a major challenge for traders. With the increase in trading hours, traders may engage in overtrading, which can significantly impact their psychology and overall well-being.

This won’t be favourable, especially for new traders who might engage in trading after work or school and college hours.

In this video, we will explore the positive and negative aspects of extending working hours in the stock market and the challenges that traders, brokers, and the National Stock Exchange (NSE) may encounter as a result.

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00:00 Intro
01:17 Every Day Is an Expiry Day
02:06 NSE’s Logic for Extending Trading Timings
06:35 New Market for NSE
08:23 SEBI Should Do Due Diligence Before Approving

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