Thursday, February 2, 2023
  • Home
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA
Top Theto
  • Home
  • Computer
    • Gaming
    • Mac
    • Oparating system
    • Software
    • Tips
  • Education
    • Fashion
    • Featured
    • Finance
    • Sports
    • Home Security
  • Internet
    • Internet Tips
    • Latest Internet News
    • Seo Tips
    • World News
    • Web Design
      • WordPress
        • Plugins
        • Templates
        • Tips
      • Blogger
        • Templates
        • Tips
  • Life
    • Beauty
    • Health
    • Law
    • Property
  • Mobile
    • Android
    • Apps
    • Mobile Devices
    • Samsung
    • Sony
  • Tech
    • Auto Mobile
    • Gadgets
    • General News
    • Travel n Tour
  • Contact Us
No Result
View All Result
Top Theto
  • Home
  • Computer
    • Gaming
    • Mac
    • Oparating system
    • Software
    • Tips
  • Education
    • Fashion
    • Featured
    • Finance
    • Sports
    • Home Security
  • Internet
    • Internet Tips
    • Latest Internet News
    • Seo Tips
    • World News
    • Web Design
      • WordPress
        • Plugins
        • Templates
        • Tips
      • Blogger
        • Templates
        • Tips
  • Life
    • Beauty
    • Health
    • Law
    • Property
  • Mobile
    • Android
    • Apps
    • Mobile Devices
    • Samsung
    • Sony
  • Tech
    • Auto Mobile
    • Gadgets
    • General News
    • Travel n Tour
  • Contact Us
No Result
View All Result
Top Theto
No Result
View All Result

Possible Impact Of SEBI’s Decision To Extend Agri-trading Hours In Commodity Market In India

Ernesto J. Sager by Ernesto J. Sager
September 6, 2022
in General News
0
Article Summary show
Source
You might also like
Treat Your Frenchie To The Cutest Crocs For Dogs On Amazon!
What is ethical hacking and how does it work?
10 Best Financial News Websites for Stock Market Investors
Motives Behind This Decision
Advantages Of This Decision
Possible Challenges
Road Ahead

Source

To strengthen India’s commodity market, the Securities and Exchange Board of India (SEBI) has allowed the Stock exchanges with commodity derivatives and commodity exchanges in India to extend their operating hours. This move is an extension of the efforts of SEBI to integrate the stock exchange and commodity market in India and bring them on a common platform for trading.

According to the circular issued on 30th November 2018, SEBI has allowed the stock exchanges to extend their operating hours by an hour. The stock exchanges with commodity derivatives and commodity exchanges can operate from 9.00 am till 9.00 pm in the night. The timing for the trading of equity derivatives has been extended from 9.00 am till 11.55 pm. The new trading timings will be applicable from 1st January 2019.

You might also like

Treat Your Frenchie To The Cutest Crocs For Dogs On Amazon!

What is ethical hacking and how does it work?

10 Best Financial News Websites for Stock Market Investors

IMG_256

This decision is not arbitrary and has been left at the discretion of respective stock exchanges and commodity exchanges. The exchanges and their clearing corporations need to put adequate infrastructure, proper risk management systems, and robust surveillance systems.

Motives Behind This Decision

This decision by SEBI has been made to extend the commodity market in India. But according to experts, there are several other motives behind this decision as well. Let’s understand the main motives that have directed this decision.

This move will help align the currency market and equity markets with the commodity market.

It will make it easier for foreign investors to participate in the commodity trading for those commodities they have direct exposure to.

It will help hedgers and arbitrageurs trade on the platform after finishing their work in the spot market. Spot markets usually close by 5.00 PM across India.

This decision will also help establish India as the leading global trading center for commodities in India.

Advantages Of This Decision

Various benefits are expected from this decision for investors as well as brokers, such as: –

The Indian commodity market will align with the global commodity market regarding timing. It would enable the investors to deal with any unexpected shocks or opportunities in an effective manner.

The volatility in the market would also be reduced to a great extent. There are significant overnight risks to which a trader is exposed. These risks can be effectively managed through these extended timings. It will, in turn, help control the element of volatility as well.

With a wider trading ambit, it is expected that the trading volumes will also increase substantially. Those investors who are busy with their routine office work and cannot trade can now do so in the evening. It will act as an encouragement for more traders to participate in the market.

Investors can use this opportunity to hedge their risks at a later stage. This opportunity is not available now, and the investors have to look at global exchanges to hedge their overnight risks.

Possible Challenges

It is not as if this move is going to ensure smooth sailing for investors and brokers. Several challenges might impact the desired outcomes from this decision.

The foremost challenge is posed by the absence of a uniform back-end system. In most cases in the Indian market, clearing members and trading members are the same. The backend system will have to bring together the banks, custodians, and clearing corporations.

There might be instances of excessive speculation in the market due to the participation of foreign investors.

There would be an additional cost for brokers as they will have to rework their policy to manage risk, surveillance, and execution. They will have to assess the feasibility of incurring additional expenses.

There will be a possible increase in the market’s noise with the expansion of the bid-offer spread.

Road Ahead

The changed timings will come in effect from 1st January 2019. But it is entirely up to the stock exchanges and commodity exchanges to put them into practice. They also need to beef up their infrastructure and risk management systems. They also need to inform the brokers and investors regarding the change in timings. Many stock exchanges speculate that the additional revenue expected to be generated might not be commensurate with the expenses incurred. This decision seems to be a mixed bag, and only time will tell if the expected advantages are achieved or the speculations regarding it being a risky move come true.

Previous Post

Nest’s new home camera is an interesting toy

Next Post

Your home security cameras could help police solve crimes

Ernesto J. Sager

Ernesto J. Sager

Infuriatingly humble internet advocate. Unable to type with boxing gloves on. Alcohol expert. Twitter scholar. Creator. Spent 2001-2005 consulting about Virgin Mary figurines in Salisbury, MD. Spent 2002-2008 licensing corncob pipes in Phoenix, AZ. Spent 2002-2009 investing in glucose in Gainesville, FL. Spent 2002-2010 deploying Roombas in Suffolk, NY. Spent college summers testing the market for soap scum in the UK. Prior to my current job I was lecturing about birdhouses in Cuba.

Related Posts

Treat Your Frenchie To The Cutest Crocs For Dogs On Amazon!
General News

Treat Your Frenchie To The Cutest Crocs For Dogs On Amazon!

by Ernesto J. Sager
January 29, 2023
What is ethical hacking and how does it work?
General News

What is ethical hacking and how does it work?

by Ernesto J. Sager
January 25, 2023
10 Best Financial News Websites for Stock Market Investors
General News

10 Best Financial News Websites for Stock Market Investors

by Ernesto J. Sager
December 23, 2022
Venugopal, 86, may replace Rohatgi as attorney general
General News

Venugopal, 86, may replace Rohatgi as attorney general

by Ernesto J. Sager
September 2, 2022
France general ‘took fighter jet for weekends
General News

France general ‘took fighter jet for weekends

by Ernesto J. Sager
September 2, 2022
Next Post
Your home security cameras could help police solve crimes

Your home security cameras could help police solve crimes

No Result
View All Result

Today Trending

10 Things You Can Do With the Internet Today

10 Things You Can Do With the Internet Today

by Ernesto J. Sager
February 1, 2023
0

The internet has given us many things, like music streaming, online shopping, movies, videos, and much more! It is the...

Treat Your Frenchie To The Cutest Crocs For Dogs On Amazon!

Treat Your Frenchie To The Cutest Crocs For Dogs On Amazon!

by Ernesto J. Sager
January 29, 2023
0

Thanks to these Crocs for dogs, Frenchie owners have never had it so good. Realistically-sized footwear can be a real...

Internet Marketing – The Ultimate Guide to Building a Successful Website

Internet Marketing – The Ultimate Guide to Building a Successful Website

by Ernesto J. Sager
January 27, 2023
0

You’ve spent hours pouring over internet marketing books, creating an awesome website, writing killer copy, and getting all your ducks...

Must See

10 Things You Can Do With the Internet Today
Internet Tips

10 Things You Can Do With the Internet Today

February 1, 2023
Treat Your Frenchie To The Cutest Crocs For Dogs On Amazon!
General News

Treat Your Frenchie To The Cutest Crocs For Dogs On Amazon!

January 29, 2023
Internet Marketing – The Ultimate Guide to Building a Successful Website
Internet

Internet Marketing – The Ultimate Guide to Building a Successful Website

January 27, 2023
What is ethical hacking and how does it work?
General News

What is ethical hacking and how does it work?

January 25, 2023

About Us

TopTheto is the website where you can get all the latest posts regarding the internet and tech stuff on a daily basis so please subscribe to our newsletter no never miss any updates from us.

Conatct Us: admin@toptheto.com

Popular Post

Film Blogger Accused of Sexual Assault
Blogger

Film Blogger Accused of Sexual Assault

by Ernesto J. Sager
September 20, 2022
0

He lost his process atop the film web page Birth.Movies.Death when he becomes accused of attack in the wake of...

Read more

Recent Post

10 Things You Can Do With the Internet Today

10 Things You Can Do With the Internet Today

February 1, 2023
Treat Your Frenchie To The Cutest Crocs For Dogs On Amazon!

Treat Your Frenchie To The Cutest Crocs For Dogs On Amazon!

January 29, 2023
Internet Marketing – The Ultimate Guide to Building a Successful Website

Internet Marketing – The Ultimate Guide to Building a Successful Website

January 27, 2023

Must See

10 Things You Can Do With the Internet Today
Internet Tips

10 Things You Can Do With the Internet Today

by Ernesto J. Sager
February 1, 2023
0

...

Read more

CopyRight © 2023 - Toptheto | ALL Rights Reserved To Us

No Result
View All Result
  • Home
  • Computer
    • Gaming
    • Mac
    • Oparating system
    • Software
    • Tips
  • Education
    • Fashion
    • Featured
    • Finance
    • Sports
    • Home Security
  • Internet
    • Internet Tips
    • Latest Internet News
    • Seo Tips
    • World News
    • Web Design
      • WordPress
      • Blogger
  • Life
    • Beauty
    • Health
    • Law
    • Property
  • Mobile
    • Android
    • Apps
    • Mobile Devices
    • Samsung
    • Sony
  • Tech
    • Auto Mobile
    • Gadgets
    • General News
    • Travel n Tour
  • Contact Us

CopyRight © 2023 - Toptheto | ALL Rights Reserved To Us