Brokers seek afternoon Muhurat trading session on Diwali, exchanges weigh proposal

The timing of Muhurat trading on Diwali this year may change again. Stock brokers and several market bodies have demanded that the session be held in the afternoon. The proposal has started a discussion on the timetable for the special Diwali session. However, no official announcement of the final timetable has been made yet.

Stock brokers have sent the proposal to the stock exchanges through the Brokers' Industry Standards Forum (BISF). They say this year's auspicious Diwali muhurat falls between 1:47 pm and 3:12 pm. Keeping this in view, brokers have requested that Muhurat trading be held between 2 pm and 3 pm.

According to available information, the exchanges are considering the proposal. Under the initial plan, the Muhurat trading session could run from 2:20 pm to 3:20 pm. Before that, a block deal window from 1:50 pm to 2:05 pm and a pre-open session from 2:05 pm to 2:20 pm are likely. But this timetable has not yet received official approval. The final timing is expected to be announced only after discussion at the exchanges and the necessary preparations are complete.

The Association of NSE Members of India (ANMI) has also backed the proposal for an afternoon session. The main aim behind the demand is that tradition is kept up while employees can maintain a work-life balance. According to ANMI national president Kamlesh Shroff, an afternoon session would allow brokers, employees and their families to celebrate Diwali without the stress of working late.

Jai Prakash Gupta, founder of the trading platform Dhan, has also demanded that Muhurat trading be held in the afternoon this year. He said Muhurat trading is an important tradition of the stock market, but several administrative and compliance processes have to be completed afterwards, so employees often have to stay late.

Even after the session ends, employees of brokerage firms, stock exchanges, clearing corporations, depositories, custodians and banks have many tasks to complete. These include early pay-in of securities, fund allocation and other necessary compliance processes. To finish them on time, employees have to stay late at the office even on Diwali. According to brokers, if the session is held in the afternoon, there will be enough time for these tasks and employees will be able to celebrate the festival with their families in the evening.

Along with the change in timing, brokers have also sought relaxation in some processes. They suggest that some tasks, such as early pay-in of securities and fund allocation, be allowed to be completed on the next trading day. The proposal also includes suggestions such as relief in penalties for peak margin shortfalls and permission to complete end-of-day (EOD) allocation before 9 am on the next trading day. The aim of these demands is not to evade rules but to reduce the extra workload on employees while the necessary work is done.

Muhurat trading is a tradition of the Indian stock market that goes back several decades. The Bombay Stock Exchange (BSE) started this special session in 1957. Since then, shares have been traded at the auspicious time on Diwali. In Hindu tradition, Diwali and Lakshmi Puja are considered symbols of wealth, prosperity and new beginnings, so many investors take part. The session is also linked to the start of the new year in the Vikram Samvat calendar.

Last year, the traditional evening timetable for Muhurat trading was changed and the session was held from 1:45 pm to 2:45 pm. This year too, an afternoon option is under discussion. For now, the proposal to change the timing is under consideration. The firm timing for this year will become clear only after the exchanges issue an official circular. Investors should therefore watch for official announcements from NSE and BSE for the final timetable.