The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) are exploring synchronising the trading time for all markets, including stocks, bonds, currency and commodities, The Economic Times reported.
This is to ensure ease of operations for investors betting across asset classes as well as for the back-end staff at intermediaries. RBI has started working on a plan to implement this, according to the report.
Also Read: Inflation, earnings likely to keep markets rangebound in this truncated week: Experts
Inter-regulatory discussions are examining the feasibility of such a proposal. The RBI has sought comment from market participants on the proposal. The central bank is in the process of restoring pre-pandemic market hours.
Moneycontrol could not independently verify the report.
Earlier last week, the RBI announced that financial markets including bonds, rupee, interbank call money and tripartite repo would open at 9 am from April 18, an hour earlier than now. However, closing would continue to be at 3.30 pm, which was 5 pm before the pandemic.
In the equity market, the pre-open session starts at 9 am, while regular trading happens from 9.15 am to 3.30 pm. In the sovereign bond market, most of the trades typically happen in the first half of the trading session. If it closes early in line with the equity market timing, volumes are unlikely to be affected.
In the equity market, settlements take around two days to complete, under what is known as T+2. For government bonds, it is T+1. Corporate bond trading is also typically settled T+1, though some may show T+0 or T+2.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
