Citing higher risks, commodity brokers urge Sebi to increase trading hours till 11:30 pm
In a letter to Santosh Kumar Mohanty, executive director and whole-time director of Sebi, CPAI national president Narinder Wadhwa said the request is based on an opinion poll of its members who overwhelmingly voted for restoration of the original trading timing till 11:30 pm.
After the imposition of a nationwide lockdown to fight the spread of the deadly coronavirus, Sebi had reduced the trading hours on commodity markets to 9 am-5 pm from the earlier 9 am-11:30 pm to help exchange employees and traders practice social distancing.However, the shortened trading hours, the association claimed, have increased their risks and thus, the possibility of losses.Advertisement
Citing the outcome of the members' survey, Wadhwa said as much as 69 per cent of them want the trading hours to be restored till 11:30 pm.
"Moreover, many members are of the opinion that the reduced trading hours are depriving their clients and other market participants from accessing the market when trading and volatility peaks on global commodity exchanges, posing greater risks of adverse gap-up or gap-down opening in the domestic market that open at 9 am the following day," the letter, seen by , said."In view of this, we request Sebi to consider restoring the trading hours to 11:30 pm as soon as it deems possible," it said.
The association lauded Sebi for taking measures to reduce compliance burden, easing operational procedures, extending deadlines, and for its regular advisories to the states which gradually facilitated issuance of curfew passes for staff of broking entities to reach office."These measures have bolstered the confidence and morale of the broking fraternity in running the business and providing the services to the clients," it said. Following the shortening of trading hours, the largest commodity exchange MCX had last week told that the volume on its platform had more than halved. BEN RVK