I think SEBI is panicked for the coming evening trading from Ist oct and they must have gave approval on pressure from NSE ... this is new territory and they don't know how the risk systems will work ... so all this nonsense just being extra careful ..
Why Oct 2nd week? Probably they want to see the extra volume in the night for two weeks (from Oct 1st). After that, they will kick out small retail investors and traders.
Most of the retailers will be out of F&O segment soon. Without liquidity, FII-FPI will face huge impact cost for their high volume trades at night due to the liquidity crisis. Now I really doubt about the success of Night Session!