RBI Extends Trading Time: The Reserve Bank of India (RBI) on Wednesday announced an extension of trading hours for the call money market, market repo, and Tri-Party Repo (TREP), starting from July 1. The move follows recommendations from a working group led by Radha Shyam Ratho.
As per the official statement, the call money market will now operate from 9:00 am to 7:00 pm—two hours longer than the current closing time of 5:00 pm. “The market timings for call money shall be extended to 7:00 PM with effect from July 01. Accordingly, the revised market hours shall be from 9:00 AM to 7:00 PM,” the central bank stated.
Trading Hours For Market Repo And TREP Segments
Similarly, trading hours for the market repo and TREP segments will be extended to 4:00 pm, compared to the present closing time of 2:30 pm. “The trading hours of market repo and Tri-Party Repo (TREP) shall be extended to 4:00 PM with effect from August 01. Accordingly, the revised trading hours shall be from 9:00 AM to 4:00 PM,” RBI mentioned. The RBI stated that the move aims to provide greater flexibility to market participants and enhance liquidity management in the overnight money market.
The central bank expects the extended trading hours to improve price discovery and enable financial institutions to manage their short-term funding requirements more efficiently. However, trading hours for other markets—such as government securities, foreign exchange, and interest rate derivatives—will remain unchanged for now.
The working group that recommended these changes was asked to review the current trading and settlement timings to improve market development, support price discovery, and make liquidity management more efficient. The RBI also mentioned that it is still reviewing other suggestions made by the working group and will take further decisions in the future. (With IANS Inputs)
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