WHAT DO LONGER TRADING HOURS MEAN
1. FOR RETAIL BROKING HOUSES:
Dealing & Risk management staff will have to start earlier.
Overhead cost of firms will rise as compared to rise in Business Volume.
2. FOR FOREIGN INSTITUTIONAL INVESTORS:
It is beneficial for foreign fund managers because the trading time overlap’s with Hong Kong & Singapore.
FII’s investment will not increase in India as the capital allocation for individual markets by FII is usually fixed.
3. FOR RETAIL INVESTORS :
Orders will be placed much earlier by the investors before leaving for work, as compared to previous hours, as they placed orders after reaching their workplace.
4. FOR DAY TRADERS:
Day traders will try to spot ARBITRAGE OPPORTUNITY as they will be in front of the terminals for longer period.
5. FOR BANKS :
BANKS will have to open up much earlier by 8.00 AM if they want to retain business from big Stockbrokers & High Net worth Individuals.
6. FOR STOCK EXCHANGES:
Exchanges Collect Transaction fees from brokers.
Higher the Volume more the fees for the Exchanges.
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