Capital and commodity market regulator Sebi has advanced the start of commodity derivatives trading to 9 a.m. instead of 10 a.m. and has extended the closing of agriculture commodity futures trading to 9 p.m. instead of 5.30 p.m.

Until now, only some of the agriculture commodities such as soyabean, palm oil and cotton, which had international price discovery links, were traded till 9 p.m. But with Sebi’s latest move, all the agriculture commodities can be traded till 9 p.m., provided there is enough volume.

The change in timing is aimed at deepening the commodity derivatives markets and enhancing the participation of stakeholders such as farmer-producer organisations, value chain participants and foreign entities with exposure to the Indian physical markets, Sebi said in a statement on Friday.

As recommended by the Commodity Derivatives Advisory Committee, it has been decided to extend the trade time within which the recognised stock exchanges can set their trading hours for their commodity derivatives segment.

The extension of the trade timing is subject to the stock exchange and its clearing corporation putting in place an adequate risk management system, a surveillance system and infrastructure commensurate with the increased trading hours, said Sebi.

Advising the exchanges to make necessary changes in their by-laws, Sebi said the provision of the circular will come into effect after 30 days.

Ajay Kumar Kedia, Director, Kedia Commodities, said the move would double the cost for broking firms as they have to employ staff in two shifts.

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