Bond market in India: RBI Gov Shaktikanta Das announces new timings. See details
1 min read . Updated: 08 Feb 2023, 11:21 AM IST
Premium- Currently, bond market timing in India (other than corporate bond) is from morning 9 AM to evening 3:30 PM
Bond market in India: The Reserve Bank of India (RBI) Governor Shaktikanta Das has announced new bond market timings in India. While announcing the RBI Monetary Policy statement on Wednesday, 8th February 2023, central bank governor said that bond market timings in India will now begin from morning 9 AM and end evening 5 PM, which is back to pre-pandemic timing. Currently, bond market timings in India is from morning 9 AM to evening 3:30 PM. In December 2022, he had changed only corporate bond market timing from morning 9 AM to evening 5 PM.
"As part of our gradual move towards normalising liquidity and market operations, it has now been decided to restore market hours for the Government Securities market to the pre-pandemic timing of 9 am to 5 pm," Shaktikanta Das said.
"Moreover, as part of our ongoing endeavour to further develop the government securities market, we propose to permit lending and borrowing of G-secs. This will provide investors with an avenue to deploy their idle securities, enhance portfolio returns and facilitate wider participation. This measure will also add depth and liquidity to the G-sec market; aid efficient price discovery; and work towards a smooth completion of the market borrowing programme of the centre and states, Das added.
On lending and borrowing in government securities, Shaktikanta Das said, "We propose to permit lending and borrowing of g-secs (government securities). This will provide investors with an avenue to deploy their idle securities, enhance portfolio returns and facilitate wider participation," RBI Governor Shaktikanta Das said in his monetary policy address. “This measure will also add depth and liquidity to the g-sec market."
In December 2022, RBI has raised corporate bond market timing from morning 9 AM to evening 5 PM, changing its timing from morning 9 AM to evening 3:30 PM. Now, the RBI has decided to bring the entire bond market timing in pre-Covid period.
In December 2022, RBI MPC statement, RBI Governor Shaktikanta Das had announced to move towards normal liquidity operations and decided to restore market hours from morning 9 AM to evening 5 PM. But, this morning 9 AM to evening 5 PM market hours was for call/notice/term money, commercial paper, certificates of deposit, repo in the corporate bond segment of the money market, as well as rupee interest rate derivatives.
