U K Sinha, chairman of the Securities and Exchange Board of India (Sebi), on Wednesday said there was no proposal to keep exchanges open on February 28 (a Saturday), when Budget 2015-16 is to be presented. Usually, the stock market sees some volatility when the Budget is presented, as participants price in the impact of the day’s policy announcements. In response to a specific question on whether Sebi would keep the market open on Budget day, Sinha said, “I don’t think there is any correlation between the day on which the market is open and the day on which the Budget is presented. The market functions in its own way; it has its own momentum, its own calendar. I don’t think the two are related. The timing of the Budget is the prerogative of Parliament and the government.
The market functions according to its own calendar.” Sources at two of the three stock exchanges with equity segments said no concrete proposal in this regard had been made to the regulator yet. They added they would abide by Sebi’s decision. An exchange official said there had been stray queries from the market on whether there would be a trading session on Budget day. So far, the exchange hasn’t received a formal representation from participants. An official at another exchange said the matter was being discussed internally, though were no immediate plans to come up with a proposal. The regulator’s decision would be abided by, the official added.