The Reserve Bank of India (RBI) has announced an extension of trading hours for specific segments of the financial market, aiming to strengthen market efficiency and improve liquidity operations. The revised timings are part of a broader effort to support smoother functioning and better short-term fund management.
Longer Hours for Call Money Market from July 1
Effective July 1, the interbank call money market will see its trading hours extended by two hours. The new operational window will run from 9:00 am to 7:00 pm. This change is intended to offer banks additional time to manage their short-term borrowing and lending needs, contributing to a more active and responsive money market.
Repo and TREP Market Timings Extended from August 1
Starting August 1, the trading session for both market repo and Tri-Party Repo (TREP) transactions will also be extended. These segments will now operate from 9:00 am to 4:00 pm, providing more flexibility to institutions engaged in repurchase agreement-based liquidity management.
No Change in Timings for Other Market Segments
The RBI has confirmed that the trading hours for other key markets, including the government securities market, foreign exchange market, and interest rate derivatives, will remain unchanged. The adjustments are focused specifically on the segments most closely linked to interbank liquidity.
Purpose of the Extension
These timing extensions are aimed at improving access to funds during business hours, allowing for better cash flow alignment and encouraging more active participation in the financial system. The changes are expected to support a more resilient and responsive market structure without disrupting existing frameworks in other trading segments.