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NSE starts 15-min 'closing session'
June 25, 2003 18:00 IST
Following the reduction in settlement cycle to T+2, the National Stock Exchange has introduced a 15-minute 'closing session' after normal market hours to provide investors opportunity to close their trading positions before ending the day and avert shortages of funds.
Securities and Exchange Board of India has permitted the bourse to provide a facility of trading session after normal market hours in the capital market segment, NSE said in a statement on Wednesday.
The closing session (1600- 1615 IST) has been operational from June 16, it added.
The shortening of the settlement cycle to T+2 has reduced the overall market risks while the entire trading and settlement system has moved to stringent international standards, NSE said.
The remote centres in the country may not be adequately equipped to transfer funds and move securities in short time span, leading to possibility of shortage of funds, it said adding this may happen in the absence of formal arrangement for lending and borrowing of securities.