RBI restores pre-pandemic trading hours for some money market segments

Changes effective Dec 12; RBI had shortened market hours for all segments in April 2020

The Reserve Bank of India on Wednesday said that it has decided to restore pre-pandemic trading hours for some segments of money markets and rupee interest rate derivatives.

Pre-pandemic trading hours of 9 a.m. to 5 p.m. IST have been restored for the interbank call money market, the commercial paper market, the market for certificates of deposits, repo in corporate bonds and rupee interest rate derivatives, the RBI said. The RBI’s announcement is effective from Dec 12.

The tri-party repos in government securities shall continue with the post-pandemic trading hours of 9 am to 3 pm while market repos in government securities shall also continue with the post-COVID timing of 9 am to 2:30 pm, the RBI said.

The government bond market and the currency market – including foreign currency derivatives – shall also continue with the post-Covid timings of 9 am to 3:30 pm, the central bank said.

“The trading hours for various markets regulated by the Reserve Bank were amended with effect from April 7, 2020 in view of the operational dislocations and elevated levels of health risks posed by COVID-19,” the RBI said.

“Restoration of market hours in a phased manner was commenced with effect from November 09, 2020 with the easing of pandemic-related constraints, and the opening time for regulated market hours were restored to the pre-pandemic timing of 9:00 AM with effect from April 18, 2022,” the central bank said.

In April 2020, the RBI had announced shortened market hours for all trading segments in light of the disruptions caused by the pandemic. Trade timings for all market segments were revised to 10 am to 2 pm at that time.