The exchanges said the decision was based on feedback from market participants. Sources close to the development said the joint statement by the Bombay Stock Exchange and the National Stock Exchange followed strong opposition from market players and an informal advice from the market regulator that they should consult each other and give market participants enough time to adjust with the new timings. Some termed it as one-upmanship by the exchanges, which could lead to chaos on the trading floor.
"The move could have caused a lot of problems for stock brokers and investors as they would not have been able to adjust to the extended trade timings at such short notice," said ENC Palaniappan, president of ANMI, an NSE brokers' forum.
On Wednesday, BSE announced advancing trade timing to 9.45 am, from 9.55 am. NSE reacted to the unilateral decision, saying it would start at 9 am. BSE quickly followed suit and announced it would also start trading at the same time.
In March, the market regulator had proposed an extension of trading hours to align the domestic bourses with international markets.
Sebi invited feedback and in October permitted the stock exchanges to begin the day as early as 9 am and keep the market open for trading till 5 pm. The final decision was left with the exchanges.
"Arranging for margin funds from clients so early in the day will be a problem since banks don't open that early. If the exchanges want to open earlier, why not ensure systems linked to trading are in place?" said Kishor Oswal of Mumbai-based CNI Research and Stock Broking.
Nandip Vaidya, president, retail broking, India Infoline, said, "Advancing trading hours in the morning may work, but extending them in the evening is a question mark. It needs to be seen whether increasing trading hours will lead to increase in liquidity and efficient price discovery."
ANMI and BSE Brokers' Forum surveys showed most of the brokers were opposed to the extension of trading hours. Palaniappan said some of the brokers were still divided on the issue and they would hold a meeting to debate it on December 20.
Dinesh Thakkar, chairman and managing director of Angel Stock Broking, said, "The postponement will give the market participants time to put the infrastructure in place and manage the extended trading hours with full planning and preparation."
Dharmesh Mehta, head of broking at Enam Securities, said consent of all participants should have been taken before taking the decision. In cities like Mumbai, commuting time also needs to be considered.
Many brokers are still worried about the operational aspects of the move, in addition to the strain that it would put on their daily routine.
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