The Reserve Financial institution of India (RBI) on Wednesday introduced the restoration of the market hours for the Authorities Securities market to the pre-pandemic timing of 9 am to five pm. The central financial institution additionally permitted lending and borrowing of G-secs. The RBI stated that this can present buyers with an avenue to deploy their idle securities, improve portfolio returns, and facilitate wider participation.
RBI Governor Shaktikanta Das stated, “As a part of our gradual transfer in the direction of normalising liquidity and market operations, it has now been determined to revive market hours for the Authorities Securities market to the pre-pandemic timing of 9 am to five pm. Furthermore, as a part of our ongoing endeavour to additional develop the federal government securities market, we suggest to allow lending and borrowing of G-secs.”
“This measure may also add depth and liquidity to the G-sec market; help environment friendly value discovery; and work in the direction of a easy completion of the market borrowing programme of the centre and states,” Das added. The buying and selling hours for numerous markets regulated by the RBI had been amended in 2020 in view of the operational dislocations and elevated ranges of well being dangers posed by Covid-19.
The RBI in a separated press releases stated, “Restoration of market hours in a phased method was commenced with impact from November 9, 2020, and market hours in respect of name/discover/time period cash, market repo and tri-party repo in authorities securities, industrial papers, certificates of deposit and rupee rate of interest derivatives traded exterior the recognised inventory exchanges have since been restored to pre-pandemic stage.”
The brand new announcement will come into impact on February 13, 2023.
Additionally Learn: RBI Monetary Policy: Central Bank Hikes Repo Rate By 25 Bps To 6.5%, FY24 GDP Growth At 6.4%
After three days of deliberations the RBI’s Financial Coverage Committee, headed by Governor Shaktikanta Das, on Wednesday introduced a 25 foundation level (bps) hike within the repo charge to six.5 per cent. Sustaining an accommodative stance, the central financial institution maintained its dedication to combat inflation.
