The Reserve Bank of India (RBI) today, in a unprecedented 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 these markets will be now from 10 am to 2 pm.
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
The resultant dislocations due to coronavirus outbreak have adversely impacted the functioning of financial markets, the central bank said.
"The thinning out of activity is impacting market liquidity and increasing volatility of financial prices. In order to minimise these risks and to ensure that market participants maintain adequate checks and supervisory controls while optimising thin resources and ensuring safety of personnel, it has been decided to revise trading hours," the RBI said.
The RBI said that all regular banking services for customers, including RTGS, NEFT and other retail payments systems will continue to be available as per extant timings.
Source - LIVE MINT