InvestorQ : Why has the RBI decided to reduce the market trading hours and what could be the impact of such a move?
Ria Jain made post

Why has the RBI decided to reduce the market trading hours and what could be the impact of such a move?

Answer
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Anu Biswas answered.
5 months ago


Reserve Bank has curtailed money market hours in the light of the practical difficulties brought out by the lockdown following the COVID-19. New timings will come into force from April 7, 2020 (since 06 Apr is a trading holiday) and continue to April 17, 2020 (Friday). Trading will be restricted to just four hours from 10 am to 2 pm. This includes the call market, term money market, repo market, CP & CD market, Corporate bond market, G-Sec and T-Bill market, currency market (excluding exchange traded currency derivatives), rupee Interest Rate Derivatives etc. This has been necessitated due to the thinning volumes in the financial markets due to the lockdown. This has brought in unnecessarily volatility. Also, full trading hours would have created unnecessary risk in the market. NEFT/RTGS will continue.