According to a news report, the National Stock Exchange (NSE) is considering extending the trading window and hours for equity derivatives, i.e. futures and options (F&O) contracts on its platform. 

Apart from the regular session from 9:15 am to 3:30 pm, the largest exchange in the country will likely begin a separate trading session on the same day, from 6:00 pm to 9:00 pm, for equity derivative contracts. Many reports also indicated that this trading window might be extended till 11:30 pm or 11:55 pm. 

The report claims that the NSE has already submitted papers for the plan to the market regulator Securities and Exchange Board of India (SEBI), and is awaiting its approval. SEBI has already laid down rules for exchanges to keep F&O trading open until 11:55 pm and trading of equity shares open until 5 pm.

NSE is planning to introduce the extended trading hours in a phased manner. Initially, the trading is expected to begin in the index F&O contracts, including Nifty 50 and Bank Nifty and later, stock derivatives might also start trading in this 2nd trading window.

The settlement of the second session will likely be done on the next day due to the working hours constraints of other market intermediaries. However, the expiry days and timings for all products will remain unchanged.

The second trading window might help traders manage their positions more efficiently concerning the global markets. The extended trading window coincides with the Multi Commodity Exchange (MCX) trading hours. This could help keep traders in sync with the international markets. Further, longer trading hours could enhance trading volume on the exchange.