What is the trading hours extension policy in case of stock exchange outage?
As per the latest SEBI circular, in the event of disruption of trading in one or more market segments of a stock exchange:
- Trading in unaffected segments of the affected exchange shall continue and all other unaffected exchanges shall continue to trade in all their market segments.
- The affected stock exchange will restore operations to normalcy at the earliest. Before the resumption of trading, a pre-opening session will be conducted for effective price discovery.
- Extension of trading hours for the cash market will result in an equivalent extension in the equity derivatives segment, and vice versa, provided that the trading hours at the start of the day are aligned for both segments.
- Extension of trading hours for the cash market will result in an equivalent extension for other secondary market activities conducted during trading hours such as Offer for Sale, Buyback, etc.
Extension of trading hours in case of outage/disruption
| Situation | Extension of trading hours |
|---|---|
| Affected stock exchange resumes to normalcy at least one hour (excluding 15 min of pre-open session) before the normal scheduled market closure. | NA |
| Affected stock exchange does not resume to normalcy at least one hour (excluding 15 min of pre-open session) before the normal scheduled market closure. | Trading hours extended for the day by one and a half hours for the affected stock exchange. |
| Affected stock exchange does not resume to normalcy 45 min (excluding 15 min of pre-open session) after the normal schedules market closure. | NA |
| Outage occurs during the last hour of the normal trading session and at least 15 min before the normal scheduled market closure . | Trading hours extended for the day by one and a half hours for all stock exchanges. |
Here are a few scenarios with respect to the extension of trading hours. These examples assume that:
- The trading hours for two exhanges (A & B) in the cash market and equity derivatives segment are from 9:15 a.m. to 3:30 p.m. excluding the pre-opening and post-closing sessions.
- All segments of exchange B are unaffected.
| Outage Occurence | Event | Extension of trading hours |
|---|---|---|
| In the equity derivatives segment of exchange A | Normalcy restored latest by 2:30 p.m. | No extension of trading hours for exchange A & B. |
| In the cash segment of exchange A | Start of pre-opening latest by 2:15 p.m. | No extension of trading hours for exchange A & B. |
| Any time during trading hours in the cash segment of exchange A | Failure to start pre-opening by 2:15 p.m. | Trading hours for the cash and equity derivatives segments of exchange A & B extended till 5:00 p.m. |
| Any time during trading hours in the cash segment of exchange A | Failure to start pre-opening by 4:00 p.m. | No trading permitted in the cash segment of exchange A for the day. Trading hours for the equity derivatives segment on exchange A, and the cash and equity derivatives segment of exchange B extended till 5:00 p.m. |
| At 3:05 p.m. in the cash segment of exchange A | Trading hours for the cash and equity derivatives segments of exchange A & B extended till 5:00 p.m. | |
| At 3:16 p.m. in the cash segment of exchange A | No extension of trading hours for exchange A & B. |
For more information, refer the Circular.
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