Discussions regarding the timing of the special Muhurat Trading session on Diwali have intensified once again in the Indian stock market, while stock brokers and various other market participants have renewed their request to stock exchanges to consider organizing Muhurat Trading during the daytime this year, similar to last year. In this regard, brokers have submitted an official proposal to the exchanges through the 'Brokers Industry Standards Forum' or BISF. The primary reasons cited by brokers behind this demand are tradition, inclusivity, and maintaining a proper work-life balance.
Proposed Timings and Potential Schedule
According to the information provided by brokers, the auspicious muhurat time for Diwali this year falls between 1:47 PM and 3:12 PM. Keeping this in mind, they've proposed conducting the trading session between 2:00 PM and 3:00 PM. According to sources, the exchanges are actively considering this request. Under the initial and tentative plan, if finalized, Muhurat Trading could take place between 2:20 PM and 3:20 PM.
As per this potential schedule, a 'Block Deal Window' could be held prior to the main session from 1:50 PM to 2:05 PM, followed by a 'Pre-Open Session' from 2:05 PM to 2:20 PM. However, no official circular has been issued by the exchanges in this regard yet. Traditionally, exchanges always consult with each other before finalizing any trading schedules and holidays. The final and official schedule for Muhurat Trading is expected to be announced only after these comprehensive discussions are concluded.
It's worth recalling that last year too, Muhurat Trading was shifted from its traditional evening slot to daytime, taking place between 1:45 PM and 2:45 PM, which was widely appreciated across the market.
Giving Professionals a Chance to Celebrate Diwali
The 'Association of National Exchanges Members of India' or ANMI has also strongly urged the exchanges to consider the proposal of conducting Muhurat Trading in the afternoon, while expressing his views, ANMI National President Kamlesh Shroff stated that this will keep our old and glorious market tradition alive while freeing brokers, employees, and their families from the heavy pressure of a late-evening trading session, allowing them to celebrate Diwali together.
Similarly, Jay Prakash Gupta, founder of 'Dhan', who initially spearheaded the initiative for daytime Muhurat Trading last year, has made a similar strong appeal this year as well. Highlighting his point, he stated that while Muhurat Trading is a very special and historical tradition of the Indian stock market, it also brings along various operational and compliance responsibilities. Due to these tasks, people and employees often have to work late into the evening. Holding Muhurat Trading in the afternoon this Diwali will give all these professionals a golden opportunity to fulfill their necessary responsibilities and share festive joy with their families.
Core Argument of Brokers and Market Institutions
The clear argument put forward by market brokers is that this afternoon session will help thousands of employees working round the clock in brokerage firms, stock exchanges, clearing corporations, depositories, custodians, banks, and other financial institutions associated with the market to complete their work on time. Consequently, they will be able to peacefully celebrate Diwali with their respective families during the auspicious evening hours. Brokers also emphasized that the purpose of their request is by no means to seek relaxation in rules or laws, but solely to ensure that market professionals get an opportunity to celebrate the festival with their families while the stock market functions smoothly.
Brokers have also drawn attention to all the compliance requirements and formalities that need to be fulfilled immediately after Muhurat Trading. They've made a very practical suggestion that certain necessary procedures, such as the 'early pay-in' of securities and fund allocation work, should be permitted to be completed by the next trading day.
Concessions Related to Tax, Margin, and Reporting
Other important suggestions made by brokers include completely waiving the penalty levied on 'peak margin' shortfalls during this special trading session and granting special exemption to complete 'end-of-day' or EOD allocation work before 9:00 AM on the next trading day. According to brokers, due to the existing and legacy schedules, employees of institutions connected to the market, including stock exchanges and clearing corporations, get very little time to celebrate festivals with their families and children.
As compliance requirements and rules in the market continue to increase and reporting deadlines become stricter, employees often have to stay back at the office for long hours to complete post-trade processes such as fund allocation and securities 'early pay-in'. Pointing this out, brokers stated that by the time they finish all their work and reach their homes, almost all the enthusiasm and spirit of celebrating Diwali has faded away, while they also highlighted that this serious problem has persisted for many years now.
Historical Background of Muhurat Trading
For the uninitiated, Muhurat Trading is a very old and culturally significant tradition of the Indian stock market, held every year on the auspicious day of Diwali, while in Hindu religious traditions and beliefs, investors and traders participate in this special session with great enthusiasm as a symbol of inviting prosperity and wealth associated with the worship of Goddess Lakshmi. This special session is also considered the biggest symbol of the beginning of a new financial year and new Samvat according to the Vikram Samvat calendar.
The Bombay Stock Exchange or BSE officially started this unique tradition of 'Muhurat Trading' back in the year 1957. Ever since then, this special trading session has traditionally been held during the evening hours, although a major shift was made last year by changing its timing to the afternoon, and brokers are strongly requesting to continue this arrangement this year as well.