Brokers and their employees had asked the BSE and NSE to advance the hour-long session to 10-11 in the morning from the traditional 6-7 pm, as this would allow them to complete post-trading operations by noon and give them enough time to celebrate Diwali with their families on Lakshmi Puja. That request has been rejected by the exchanges, according to people with knowledge of the matter.
The BSE and NSE announced this week that the Muhurat session will be held on November 1 at the usual time, marking the start of Samvat 2081, with a preopening at 5:45 pm.
Until last year, all post-trade operations were carried over to the next trading day, clubbing the settlement with the next trading day’s cycle, allowing brokers and their staff to leave immediately after the Muhurat session. With several changes in rules over the past year, brokers have to complete all post-trading formalities on the same day—a process that takes two to three hours after markets close.
There’s a possible solution though. Brokers and employees had also suggested that if the exchanges could not accommodate a morning session, posttrade operations could be completed the following trading day instead.
‘Various Options on Table’
The BSE and NSE didn’t respond to queries. The Association of National Exchanges Members of India (ANMI), a grouping of brokers, refused to comment on the issue.A senior stock exchange official told ET that Muhurat trading is an event steeped in tradition and has been held in the evening for several decades. “Hence, stock exchanges, market infrastructure institutions, and Sebi jointly decided to proceed with the evening session despite the brokers’ request,” he said.However, a decision regarding post-trade operations has yet to be finalised. “We are still exploring various options,” he added.
An official of the brokers’ association pointed out that if the Union budget presentation could be moved to the morning from the evening after many decades, there’s no reason why Muhurat trading cannot be similarly rescheduled.
For stockbrokers in India, Diwali marks the beginning of their fiscal year. Many investors see the session as an opportunity to buy stocks and ensure prosperity for the coming year. It also allows traders to open new settlement accounts and diversify portfolios.
The domestic trading community actively participates in Muhurat trading, making token transactions.
