INSUBCONTINENT EXCLUSIVE:
New Delhi: With a view to facilitate physical settlement of equity derivatives contracts, markets regulator Sebi today extended the trading
timings in securities lending and borrowing (SLB) segment by over two hours till 5 pm.
"It has been decided to permit stock exchanges to set
their trading hours in the SLB Segment between 9 AM and 5 PM," the Securities and Exchange Board of India (Sebi) said in a
circular.
Currently, trading is allowed in the segment from 9.55 am till 3.30 pm.
SLB mechanism allows short sellers to borrow securities
for making deliveries.
The move is aimed at facilitating physical settlement of equity derivatives contracts.
According to the Sebi, the
permission is subject to risk management system and infrastructure of stock exchanges and clearing corporations commensurate to the trading
hours.
The decision comes after the markets watchdog in May permitted exchanges to extend the trading time in equity derivatives contracts
by more than eight hours till almost midnight from October 1.
The extended timing is similar to the trading hours for commodity derivatives
segment, which are presently fixed between 10 am and 11:55 pm.
The move was part of Sebi's efforts to enable integration of stocks and
commodities trading on a single exchange.
