Dec. 17 (Bloomberg) -- Indian stock exchanges deferred plans for longer trading hours after a backlash from brokers and investors given only a day’s notice, hampering efforts to win back business lost to overseas bourses.
The Bombay Stock Exchange, founded in 1875, and the National Stock Exchange will open at the existing time of 9:55 a.m. tomorrow, instead of the 9 a.m. start they had announced last night, Bombay spokesman Kalyan Bose said. The new timings will be implemented on Jan. 4 after “market feedback,” delayed the change, Bose said in an e-mail, without elaborating.
“The decision should have been taken keeping in mind the impact on people across the country, and not taken in haste by a handful of people,” said Vijay Shah, chairman of Balance Equity Broking Pvt. in Mumbai. “Longer trading hours will give more time to day-traders and won’t mean much for genuine investors.”
The Bombay Exchange, backed by Deutsche Boerse AG and Singapore Exchange Ltd., and larger rival National exchange, partly owned by NYSE Euronext and Goldman Sachs Group Inc. want an earlier start to lure derivatives traders in Hong Kong and Singapore onto their platforms. Even a three-week grace period isn’t sufficient for brokers and investors to prepare, said K.R. Choksey Shares & Securities.
“Starting at 9 a.m. without the infrastructure in place puts the market at grave risk,” Deven Choksey, chief executive officer of K.R. Choksey said. “We need to have a common clearing house for the exchanges, not two different ones as is the case now, and a common group of banks, to speed up processing before advancing the time.”
Source: Bloomberg
No comments:
Post a Comment