RBI Extends Trading Hours for Financial Markets

The Reserve Bank of India (RBI) has announced an extension of trading hours for the interbank call money market. The new hours, effective from July 1, will be from 9:00 am to 7:00 pm, two hours longer than the current schedule. This decision aims to enhance the vibrancy and liquidity of the call money market.

Additionally, the RBI is set to extend the trading hours for the market repo and Tri-Party Repo (TREP) to 4:00 pm starting August 1. These revised timings will serve to accommodate better liquidity and encourage more participation. However, trading hours for the Government securities market, foreign exchange market, and interest rate derivatives market remain unchanged.

These changes are part of a broader initiative led by a Working Group chaired by Radha Shyam Ratho. Charged with reviewing the trading and settlement timings of financial markets, the group has submitted recommendations aimed at market enhancement. Their report, now open for public comment, has influenced the RBI's decision on trading hours, with further recommendations still under consideration.

(With inputs from agencies.)