The Reserve Bank of India in its February Monetary Policy Committee (MPC) meeting on Wednesday fully restored the government securities market timings to the pre-pandemic period which was 9 am to 5 pm for all instruments.

Although the timing for call or notice or term money market operations had been extended from the lockdown period's 10 am to 2 pm in a phased manner, such as from 10 am to 3.30 pm in April 2020 and then from 9 am to 5:00 pm in December 2022, the market hours for others remained unchanged from 9:00 am to 3:30 pm.

With the latest announcement, the market hour for tri-party repo in government securities, government securities (central government securities, state development loans and treasury bills) and foreign currency (FCY)/ Indian Rupee trades have been restored from 9:00 am to 5 pm.

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Extended trading always means extended trading volume. It allows investors to act quickly on relevant news and events that occur when the trade is otherwise closed. This helps them predict the open market direction.

For instance, if a major event occurs before the exchange opens, or after the exchange closes, there can be significantly extended trading volume.

The trading hours for various markets regulated by the Reserve Bank were amended in 2019 in view of the operational dislocations and elevated levels of health risks posed by COVID-19.

Catch all the latest updates on the RBI's monetary policy here

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First Published:Feb 8, 2023 11:58 AM IST