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Sebi may cut commodity derivatives timings till 5 PM over virus lockdown

The securities and Trade board of India (Sebi) is contemplating a proposal to chop down buying and selling hours for commodities derivatives from 11.30 PM to five PM until the time lockdow over is in place.

This follows the submission by brokers to the regulator requesting such measures following lockdown. Many brokers discovering it troublesome to name even naked minimal workers required in workplace.

Fairness derivatives are functioning until 3.30 for derivatives and money market. Nevertheless, commodities historically stay open until late, particularly for globally refrenciable commodities like bullion, metals and power. Worldwide are open around the clock.

In view of Covid-19, authorities has declared countrywide lockdown until April 14 and brokers and alternate workers are additionally discovering it troublesome to handle to return to workplace regardless of no ban on them. In view of this, the Commodity Individuals Affiliation of India, an apex physique for commodity brokers has represented to the regulator to chop timing for derivatives according to agri commodities which finish at 5 PM.

“As a short lived measure until normalcy is established once more it’s advisable to chop buying and selling timings to five pm,” mentioned Narendra Wadhwa, President, CPAI.

Right this moment, commodity segments of all exchanges had been busy masking their brief positions in view of uncertainty created after announcement of recent 21 day closure. On NCDEX, an agri commodity centric derivatives alternate, a number of commodities had been in four per cent higher circuit with none fundamentals. This, in keeping with brokers, was as a result of all those that had been brief had been masking brief positions. They had been apprehensive of market closure.

Throughout lockdown, warehouse, transport and mandis are functioning irregularly and labour shouldn’t be obtainable. In consequence delivering items on expiry might be troublesome and therefore, Wadhva urged that ought to merge present month agri commodities contracts with following month expiry contracts. This can present time and by that point lock down might be over.

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