NSE proposes longer F&O trading hours to SEBI, says report; netizens say 'this will destroy retail traders'

Traders slammed National Stock Exchange (NSE) for reportedly proposing longer F&O trading hours to SEBI. 

Economic Times reported on Monday that NSE told the market regulator that the move, proposed to start in FY24, will allow traders to "react to global events sooner". 

NSE reportedly proposed to Securities and Exchange Board of India a 6 pm-9 pm session for traders who dabble in futures and options. It proposed to settle evening session trades along with next day's regular 9:15 am-3:30 pm session, the report said. NSE may also reportedly consider extending evening session till 11:30 pm at later stage. 

Netizens took to X platform (formerly Twitter) to slam its proposed move and said an extended F&O session will only mean more losses for retail traders.

"I will stop trading in options if this happens," quipped a trader on X.

"NSE and SEBI is just trying to loot money from retailers and make them gamblers. There is no advantage for someone to sit and trade 13hrs.. i will do just do a day job and make less risky positional trades," lamented an X user. 

"SEBI Report says 9 out of 10 trader looses money in F&0 positions. So as SEBI what should we do ?? We will increase timing of F&O trading. So 10 out of 10 can loose their money," joked another X user. 

"Most people want a 4 hour work day and these guys want to make it 16 hours," observed another X user. 

In an analysis published in January, SEBI said nine out of 10 individual traders in the equity F&O segment incurred net losses during both FY19 and FY22 and that 98% of individual traders in the equity F&O segment traded in options during FY22.

"On average, loss makers registered net trading loss close to Rs 50,000 in FY22. The average absolute net loss of a loss maker was over 15 times the net profit made by a profit maker," stated the Sebi release.

Over and above the net trading losses incurred, loss makers expended an additional 28 per cent of net trading losses as transaction costs.

Even for those that managed to register some profits, between 15 per cent and 50 per cent of the profits went towards transaction cost.

The study was based on a sample of all individual clients of the top 10 stockbrokers, accounting for 67 per cent of the overall individual client turnover in the equity F&O segment during FY22.