Muhurat Trading may shift to afternoon again as market participants urge exchanges, 2:20-3:20 pm slot under discussion: Sources

They have proposed a trading session between 2 pm and 3 pm. Sources said exchanges are considering the request. As per the initial plan under discussion, Muhurat Trading could be held between 2:20 pm and 3:20 pm. This would be preceded by a block deal window from 1:50 pm to 2:05 pm, followed by a pre-open session from 2:05 pm to 2:20 pm. However, official circulars are yet to be issued. Exchanges typically consult each other before finalising trading schedules and holidays.

The final Muhurat Trading schedule is expected to be announced after these consultations are completed. Last year, Muhurat Trading was shifted to the afternoon, from 1:45 pm to 2:45 pm, instead of the customary evening slot. Spokespersons for BSE and NSE did not immediately respond to request for comments. Association of NSE Members of India (ANMI) has separately urged exchanges to consider the proposal of afternoon Muhurt Trading citing the spirit of ‘tradition, inclusivity and work-life balance’.

ANMI National President, Kamlesh Shroff said, “This would uphold our cherished market tradition while allowing brokers, employees and their families to celebrate Diwali together without the demands of a late-evening trading session “. Jay Prakash Gupta Founder, Dhan, who took the initiative last year for requesting MIIs to consider for day time Muhurt Trading has also urged this year. He said, “While Muhurat Trading is a cherished market tradition, it also triggers a full set of operational and compliance responsibilities that often keep people at work well into the evening.

Continuing the Muhurat Trading in afternoon this Diwali would allow these professionals to fulfil their responsibilities and celebrate the festival with their families”. Brokers have argued that an afternoon session would allow thousands of employees working at brokerage firms, stock exchanges, clearing corporations, depositories, custodians, banks and other market intermediaries to complete their work on time and celebrate Diwali with their families during the auspicious evening hours.

They have clarified that the objective is not to seek any relaxation of regulatory standards but to help market professionals celebrate the festival with their families while ensuring orderly market operations. Brokers have also highlighted the post-trade compliance requirements that need to be completed after Muhurat Trading. They have proposed allowing certain processes, including early pay-in of securities and fund allocations, to be completed on the next trading day.

Other suggestions include waiving penalties for peak margin shortages arising in this context and allowing end-of-day (EOD) allocations to be completed before 9 am on the next trading day. According to brokers, the existing schedule often leaves employees of market intermediaries, including stock exchanges and clearing corporations, with little time to celebrate the festival with their families. With compliance requirements increasing and reporting timelines becoming more stringent, employees often have to stay back to complete post-trade processes, including fund allocations and early pay-in of securities.

By the time they finish work and return home, the joy of celebrating Diwali gets over, brokers said. They added that this has been a recurring concern for years. Muhurat Trading is a long-standing tradition in Indian stock markets and is held every year on Diwali. Investors participate in the special session as a symbolic gesture to usher in wealth and prosperity, associated with the worship of Goddess Lakshmi in Hindu tradition.

The session also marks the beginning of the new financial year under the Vikram Samvat calendar. The Bombay Stock Exchange (BSE) began the tradition of Muhurat Trading in 1957. Since then, the special trading session has traditionally been held in the evening, although the timing was shifted to the afternoon last year.