SEBI has allowed the stock exchanges to extend trading hours of equity markets. When this is implemented, stock exchanges will start trading from 9am and close at 5pm. This is aimed at aligning Indian stock markets with international ones in a bid to woo more trades.
Most of the international stock markets work for eight hours a day, compared to Indian markets that are open for only five and a half hours. Presently India's stock markets work between 10 to 3.30.
The main hurdle for this to happen is of banks. Bank timings also needs to coincide with market timings since the transactions will have to go through it. This will also put tremendous pressure on the brokerage offices.
With this the volatility may come down which is observed in the Indian stock markets and also trading volumes will increase.
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