Non-resident Indian (NRI) investors and Indian banks operating in the UAE have welcomed a recent proposal by the Securities and Exchange Board of India, (Sebi), the Indian stock market regulator, to extend the market timings by two-and-half-hours from 9am to 5pm (Indian time).

UAE-based NRI investors in the Indian financial market said they would get more trading time and flexibility because of the new timings.

Various brokerage firms and Indian banks handling the NRI clients said they were happy and expected the daily trading volume from the UAE to go up.

Last week, Sebi proposed an extension of trading hours of the Indian stock exchanges to align the domestic bourses with international markets.

Suresh Warrier, Chief Executive Officer of Axis Bank (DIFC Branch), a private sector Indian bank that handles NRI stock trading accounts through portfolio investment scheme (PIS), said the Sebi move was a positive one.

"NRIs who are permitted to invest in shares and debentures of Indian companies under the PIS Scheme in the secondary market will get extended trading hours through the new plan.

"Getting one and a half hours more trading time for our NRI clients will be good. This is a very positive step," he said.

The new trading hours would help integrate the Indian market with Singapore and other Asian markets in the morning hours, and the European markets in the evening hours.

"There are five Indian banks operating in DIFC, which has become an important market for Indian corporate customers. Apart from ICICI Bank, State Bank of India and Axis Bank, the IDBI bank and Punjab National Bank have recently started operations in the DIFC," Warrier said.

K V Shamsudeen, Director of Barjeel Geojith Securities, a leading brokerage firm in the UAE handling NRI clients, said: "The new trading hours of Indian markets will be convenient for our NRI clients who currently trade from 7.30am UAE time to 2pm. With the extended trading hours, they will get time up to 3.30pm in the UAE and be able to make transactions before going to their offices here or while returning."

The new Sebi guideline is good for NRI investors in the region, he said, adding that the exact date for starting the new market timing is yet to be finalised. Investors will be able to make decisions based on information flowing in from other markets.

Trading on Asia-Pacific bourses commences a little ahead of the Indian markets while the European and American markets open much later. Extending the trade timings may enable domestic market participants to take advantage of global information flows.

At present, the markets are open from 9.55am to 3.30pm. The exchange-traded currency derivatives market operates from 9am to 5pm, and the commodity and futures market operates from 8am till 11.30pm.

Meanwhile, JRG International Brokerage DMCC, has got approval from the Emirates Securities and Commodities Authorities to open a branch office in India to sell DGCX listed gold and other commodity products.


DFSA and Sebi sign MoU

The Dubai Financial Services Authority (DFSA) and India's market regulator Sebi have signed a Memorandum of Understanding (MoU) to enhance information-sharing and co-operation between the two regulatory bodies.

The MoU was signed on behalf of the DFSA by its CEO Paul Koster and C B Bhave, Chairman of SEBI, on the eve of a DIFC seminar titled The India-UAE Partnership: Investments, Opportunities and Synergies in Mumbai, India.

In a statement, Koster said: "As the supervisor of one of the largest capital markets in the world, Sebi is an active member of the International Organisation of Securities Commissions (Iosco) and acknowledged as one that is committed to world best practice. Sebi is, like the DFSA, a signatory to Iosco's multi-lateral MoU and, as such, has already shown its ability and willingness to co-operate and share information to international standards.

Bhave said: "This arrangement establishes a framework for mutual assistance, strengthening of cross-border co-operation and contributes towards efficient performance of the supervisory functions and effective enforcement of the laws and regulations governing the markets in our respective jurisdictions."

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