A screen grab of MSEI website
A screen grab of MSEI website

MSEI postpones decision to extend trading hours

MSEI postpones its decision to extend trading hours to 5pm, says a circular mentioning the revised date of implementation will be issued separately

Mumbai: In a surprising turn of events, Metropolitan Stock Exchange of India (MSEI) Ltd said on Wednesday it is postponing its decision to extend market hours to 5pm, as it requires more time to review the plan than it had earlier anticipated.

“It is hereby informed that the implementation of the revised schedule of trading hours, as mentioned in the circular, has been postponed," MSEI said in a fresh circular.

“A circular mentioning the revised date of implementation will be issued separately," the exchange added.

Later on Wednesday, MSEI said it sought time for setting new timelines for extended trading hours in the equity capital market segment, and said the new timelines will be announced shortly. “We would like to ensure not just us, but the whole ecosystem is ready for the change and it does require more time than we anticipated initially," Udai Kumar, managing director and chief executive of MSEI, said in a release on Wednesday evening, referring to the extension of trading hours.

“We are thoroughly reviewing all arrangements and engaging the regulator as well in this regard. We will announce the new timelines once we are done with this thorough review," added Kumar.

MSEI, formerly known as MCX-SX, had said it will extend trading hours to 5pm from Friday after market hours on Tuesday.

The move was largely seen as an effort to garner market share from larger rivals BSE Ltd and the National Stock Exchange (NSE) of India Ltd.

“We need to provide clarity to the regulator on certain technicalities," a senior official at the exchange, who did not wish to be named, said.

“Sebi (Securities and Exchange Board of India) had asked us some queries some time to back...and said we still need more explanations," he added. The official said certain preparatory tests need to be done and the exchange required brokers’ participation for the same.

Market regulator Sebi had permitted stock exchanges to set trading hours in the equity and derivatives segments between 9am and 5pm in a circular on 23 October, 2009.