{"id":3556,"date":"2019-07-11T10:26:27","date_gmt":"2019-07-11T10:26:27","guid":{"rendered":"https:\/\/www.gkseries.com\/blog\/?p=3556"},"modified":"2019-07-11T15:44:01","modified_gmt":"2019-07-11T15:44:01","slug":"rbi-formed-an-internal-committee-to-review-timings-of-different-financial-markets","status":"publish","type":"post","link":"https:\/\/www.gkseries.com\/blog\/rbi-formed-an-internal-committee-to-review-timings-of-different-financial-markets\/","title":{"rendered":"RBI formed an internal committee to review timings of different financial markets"},"content":{"rendered":"\n

An internal committee of the Reserve Bank of India, which was set up to\nreview timings of different financial markets, suggested that the foreign\nexchange market could function from 9 am to 9 pm At present, the currency\nmarket works from 9 am to 5 pm. It change the timing of the functioning of the\nforeign exchange market from 9 am to 9 pm<\/strong>. Currently, the\ncurrency market works from 9 am to 5 pm. <\/strong>The move is after\nRBI’s consideration to gauge demand and potential benefits. RBI also said that if\nthere is lack of demand from participants,<\/strong> the current market\ntimings for government security markets may be retained.<\/p>\n\n\n\n

\u201cCalibrated extension of market hours, and to begin with, revised market\ntimings of 9 am \u2014 9 pm, may be considered to gauge demand and potential\nbenefits,\u201d the draft report of the committee said.<\/p>\n\n\n\n

The report noted that there are mixed views on the benefits of extension of\nmarket timing. <\/p>\n\n\n\n

\u201cWhile the extension of market timings is expected to provide benefits such as better pricing of post market hours information\/data, improved onshore price discovery and a possible shift of offshore volumes to onshore, there is a view that it may entail higher costs to stakeholders,\u201d it said. <\/p>\n\n\n\n

Since the central bank is in the process of reviewing and rationalising foreign exchange regulations to provide flexibility regarding products, participation and positions, both for residents and non-residents, extension of market hours would complement these policy measures, the draft said. <\/p>\n\n\n\n

The panel suggested call money market timings could be extended till 6 pm\ninstead of the 5 pm now, to facilitate liquidity management by banks. <\/p>\n\n\n\n

The current market timings for government security markets may be retained,\nthe draft said, on account of lack of demand from participants.<\/p>\n\n\n\n

Objective:<\/strong>
The move is after RBI’s consideration <\/strong>to gauge demand and potential benefits.<\/strong> This extension of market timings is expected to provide various benefits like better pricing of post market hours information\/data, improved onshore price discovery and a possible shift of offshore volumes to onshore. It is also understood that the extension might entail higher costs to stakeholders.

RBI to rationalise Forex regulations:<\/strong>
RBI also plans to review and rationalise foreign exchange (Forex) regulations<\/strong>. It aims to provide flexibility<\/strong> regarding products, participation and positions, both for residents and non-residents, extension of market hours would complement these policy measures.
The panel suggested call money market timings<\/strong> could be extended till 6 pm instead of the 5 pm now, to facilitate liquidity management by banks.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

An internal committee of the Reserve Bank of India, which was set up to review timings of different financial markets, suggested that the foreign exchange market could function from 9 am to 9 pm At present, the currency market works from 9 am to 5 pm. It change the timing of the functioning of the […]<\/p>\n","protected":false},"author":13,"featured_media":3557,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[64],"offerexpiration":[],"class_list":["post-3556","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-articles","tag-reserve-bank-of-india-current-affairs"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/3556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=3556"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/3556\/revisions"}],"predecessor-version":[{"id":3558,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/3556\/revisions\/3558"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/3557"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=3556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=3556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=3556"},{"taxonomy":"offerexpiration","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/offerexpiration?post=3556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}