*

DISCUSSION PAPER

INCREASE IN MARKET HOURS OF TRADING IN EXCHANGES
*

1. *Background
*

With the increased integration of the global markets, information
originating from

different countries has a bearing on Indian securities market. While the
Asian markets

are ahead of Indian time zone, the European and American markets extend much

beyond the Indian market timings. Some of the Exchanges in these countries
have

adopted longer trading hours, sometimes even extending up to 23 hours. This
has

facilitated market participants in these countries to hedge their risk that
might arise

due to global information flow.

Extending the trade timings of the domestic exchanges may, therefore, enable
the

domestic market participants to take advantage of such global information
flows.

Additionally, Indian markets have been in the pursuit of matching the best

international standards and practices, and the extension of market hours
would,

perhaps, be a further step in this direction.

While the benefits of increasing market hours of trading in exchanges are
evident, at

the same time, issues with market wide implications such as those pertaining
to risk

management, collateral management, infrastructural constraints etc. as well
as the

perception of the market participants and stakeholders would also play an
important

role in determining optimum market timing.

This discussion paper aims to elicit the response / views of the various
stakeholders

on the different aspects related to extending market hours of trading on
exchanges. - Check the attachment

*http://www.investmentMap.com <http://www.investmentmap.com/>*

* *

*www.IndiaPages.in <http://www.indiapages.in/>*

* *

*For Intra-day Traders - **StratStar.com <http://www.stratstar.com/>*

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