RBI extends trading hours from 09:00 AM to 05:00 PM this new rule will come into effect from 12th December 2022. This rule does not apply to the equities market. Since RBI controls the money market operations. These operations include calls, notices, term money, certificates of deposits, commercial papers, corporate bonds, and the rupee derivatives market all will be extended to the pre-pandemic levels.
When did RBI change market timings?
RBI extends trading hours because the current situation in the markets looks stable. Earlier due to the pandemic coupled with high inflation the flow of information was such that it was not suitable for the markets to stay open as even the smallest of news could adversely impact the market sentiment & a sudden downpour could be observed.
When did RBI extends trading hours?
On 7th of December, 2022 RBI announced that it is going to extend the market hours for all the segments of the money markets. The view of RBI is that the economy showed a robust bounce back from a steep decline during the time of the pandemic. Most analysts termed the recovery as a V shape recovery & some of them termed it as a K-shaped recovery. By far the markets are stable and we are heading towards 2023 therefore the timing of RBI is apt in making this announcement.
