RBI Panel's Review: Changes Recommended for Market Timing

An RBI-appointed panel recommends retaining current foreign exchange trading hours while extending call money market hours. Suggestions include aligning repo market timings and allowing post-hour transactions in government securities. Enhancements aim to foster market development, improve price discovery, and optimize liquidity requirements.

An RBI-appointed panel has recommended that the current trading hours for the foreign exchange markets remain unchanged, but has proposed extending the call money market timings to 7 PM to enhance trading opportunities.

The foreign exchange markets, primarily hedging arenas, operate from 9 AM to 3:30 PM, with extended after-market hours, effectively making them accessible 24x5. Meanwhile, call money market trading currently takes place from 9 AM to 5 PM.

The panel has also put forward recommendations to unify and extend the timing of market repo and TREP trading to 4 PM, aiming to facilitate further development and liquidity optimization. The report detailing these recommendations has been published by the RBI for stakeholder feedback.

(With inputs from agencies.)