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United News of India
New Delhi, Oct 28: Delhi Stock Exchange (DSE) is mulling the idea of introducing a late-evening trading session between 1800 hrs and 2000 hrs. The basic aim behind the move is to integrate timings and functioning of DSE with the the stock markets across the globe.
``The players are the same. If there is a late-evening trading session here, we can catch the mid-day trends in the European markets, the morning opening rates in Wall Street as also the afternoon rates at the London Stock Exchange,'' said a DSE source.
In addition, the NSE and the DSE are mulling the idea of commencing trading sessions on Saturdays with an aim to increase trading volumes and reduce kerb deals. Though both the exchanges have not finalised the time-table for going ahead with the Saturday trading, negotiations within the exchanges are on in full swing, senior exchange officials told UNI here on Wednesday.
With the late-evening session, DSE also intends to reduce kerb deals in the market and impart tranparency in thetransactions. Though the exact time frame for the same has not been fixed as yet, the new session is expected to commence within two months.
Moreover, with most of the major events taking place and policy announcements from the government being made late in the evening, trading in kerb deals have been flourishing. ``With this session on, the foreign institutional investors will be able to trade legally and the funds could be brought into the system. This will also help reduce bad delivery cases in the exchange,'' the sources added.
Presently, trading at the DSE is held from 1000 hrs to 1530 hrs. This new session is not being planned as a continuation but a second separate session.According to SS Sodhi, executive director, DSE, the move to have a Saturday trading session would help in taking up the trading volumes in the exchange. ``It will give the investors an extra day to make investments and thereby also reduce kerb deals,'' he said.
National Stock Exchange of India Limited (NSE) manager RaviVaranasi also expressed similar views, saying that the exchange had received several suggestions from investors in this regard and is seriously considering to introduce the extra trading day.
The NSE would, in fact, be holding a special session this Saturday, which might be the first step towards this end. However, exchange officials say that this is a trial run for its disaster back-up mechanism. ``We have set up a disaster back-up mechanism in Pune which helps to continue trading even if something goes wrong with the lines. This is to help uninterrupted trading. We have already conducted several mock runs of the mechanism but this would be the first time when we would be testing it live,'' Varanasi said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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