The Reserve Bank of India (RBI) today, as an exceptional move, cut market trading hours for both bonds and foreign exchange to four hours, citing possible operational and logistical risks arising from the nationwide lockdown due to the COVID-19 outbreak.
The new timings will come into force from April 7, 2020 (Tuesday) and continue up to April 17, 2020 (Friday), both days inclusive.
Trading in the following markets will be now from 10 am to 2 pm.
- Call/notice/term money
- Market repo in government securities
- Tri-party repo in government securities
- Commercial paper and Certificates of Deposit
- Repo in Corporate Bonds
- Government Securities (Central Government Securities, State Development Loans and Treasury Bills)
- Foreign Currency (FCY)/Indian Rupee (INR)
- Trades including Forex Derivatives*
- Rupee Interest Rate Derivatives*
*other than those traded on recognised stock exchanges
RBI also added that the resultant dislocations due to coronavirus outbreak have adversely impacted the functioning of financial market.
RBI note further adds that:
- The thinning out of activity is impacting market liquidity and increasing volatility of financial prices.
- In order to minimize these risks and to ensure that market participants maintain adequate checks and supervisory controls while optimising thin resources and ensuring safety of personnel, the bank has decided to revise trading hours.
- All regular banking services for customers, including RTGS, NEFT and other retail payments systems will continue to be available as per extant timings.