No trading in G-Sec, FX, money market on September 18 due to public holiday, RBI says

There will be no transactions and settlement in government securities, foreign exchange, money market and rupee interest rate derivatives on September 18 as the Maharashtra government has declared the day as a public holiday, the Reserve Bank of India said.

The holiday – which is due to Eid-e-Milad – was earlier declared on September 16.

“The earlier declared public holiday of September 16, 2024 has been cancelled… Government securities market, foreign exchange market, money market and rupee interest rate derivatives market will now function on September 16, 2024 (Monday),” RBI said. . said in a statement.

Secondary market transactions in government securities, foreign exchange, money market and rupee interest rate derivatives will continue to be settled on the same day on September 17, the central bank said.

However, settlement of all transactions outstanding on September 18 will now be postponed to the next working day – September 19, RBI said.

Settlement of central government securities auction which was held on September 13 will take place on September 17 As earlier stated, the RBI said, the settlement of state government securities auction scheduled for September 17 will now take place. 19 September instead of 18 September.

As per RBI norms, the settlement cycle for all auctions of government securities is T+1, which means funds and securities are settled on the second business day of the close of trade. Central Government through auction on September 13 Rs. 22,000 crore worth of bonds were sold.

Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) which were utilized on September 13 and were to be reversed on September 17 will now be reversed on September 16, RBI said. SDF is the window that RBI provides to banks to deposit excess cash with the central bank. The MSF is the window that the RBI provides to banks to borrow at rates above the repo rate when lenders face a shortage of funds for mandatory reserve requirements.