RBI reduces G-Secs trading hours

The Reserve Bank of India (RBI) today reduced the duration of trading in the government securities market by half-an-hour. The market will now operate from 9 am to 5 pm.

"With a view to synchronising the timing of the money, domestic foreign exchange and government securities markets, it has been decided that the market timing for outright transactions in government securities, repo in government securities and CBLO markets shall be between 9 am and 5 pm from Monday to Friday," the RBI said in a notification today.

The change was made after receiving representation from market participants, who said the timing in the government securities market was unduly long.

At present, the market timing for outright transactions in government securities, repo in government securities and collateralised borrowing and lending obligations (CBLO) is from 9 am to 5.30 pm, whereas the notice and term money market and the domestic foreign exchange market operate between 9 am and 5 pm, the RBI said.

Further, it said, in contrast to the earlier position, the results in respect of the primary auction of the central government securities were available around 2.30 pm, thereby giving enough trading time to market players.

Accordingly, the trading and reporting platforms for these markets, viz. The NDS, NDS-OM, CROMS and CBLO platform, will only be available between 9 am and 5 pm, it said.

The revised timings will be effective from August 2, 2010.