SEBI Increases Trading Hours In Commodity Derivatives Segment

Securities and Exchange Board of India has decided to increase the trading time in the commodity segment by an hour to deepen the commodity derivatives market as well as enhance the participation of stakeholders, including farmer produce organisations and foreign entities.

For non agricultural commodities, the revised timings will be from 9 am to 11.55 pm, while for agricultural and agri-processed commodities, the trading hours will be from 9 am to 9 pm.

"It has been decided to extend the trade time within which recognised stock exchanges can set their trading hours for their commodity derivatives segment," the SEBI said.

The move is in line with the recommendations of Commodity Derivatives Advisory Committee.

SEBI had earlier fixed the trading hours for non agriculture commodities from 10 am to 11.55 pm and for agricultural commodities, it was 10 am to 09:30 pm.

However, "the extension of the trade timing is subject to the stock exchange and its Clearing Corporation putting in place adequate risk management system, surveillance system and infrastructure commensurate with the increased trading hours," the SEBI added.

The provisions of the circular will come into effect after 30 days from the date of the circular, the regulator said, while directing the exchanges and Clearing Corporations to make necessary amendments to the rules and regulations.

Besides, it directed to bring the provisions regarding increased trading hours to the notice of the stock brokers.

Last month, the regulator allowed trading in the segment by foreign entities with exposure to the Indian physical commodity market. Previously, foreign entities were not permitted to directly participate in the Indian commodity derivatives market, even if they imported or exported commodities from/to India.