Stock markets closed today for Maharashtra municipal polls:Zerodha co-founder Nitin Kamath calls decision poor planning; MCX to open in evening

Trading in the Indian stock market has been suspended today, January 15, due to municipal corporation elections in Maharashtra. Both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have declared a full trading holiday for the day. However, Nithin Kamath, co-founder of India’s largest brokerage firm Zerodha, has criticized the move, calling it an example of poor planning. From settlement holiday to complete closure Initially, the exchanges had announced only a “settlement holiday”, under which the transfer of funds and shares would be paused while trading continued. Last week, however, a revised circular was issued stating that trading would be completely suspended due to bank holidays in the state. Kamath questions relevance of such holidays Kamath argued that shutting down the entire market for local body elections is illogical in today’s globally connected financial system. He said such closures negatively impact India’s image among international investors. Quoting Charlie Munger, former Vice Chairman of Berkshire Hathaway and longtime partner of Warren Buffett, Kamath wrote: “Show me the incentive and I’ll show you the outcome,” suggesting that outdated systems persist because there is little motivation to reform them. Experts call for global standards Market experts note that as India moves toward becoming the world’s third-largest economy, frequent market closures due to local holidays pose challenges for foreign institutional investors, particularly in hedging and trading. However, SEBI and the government maintain that such holidays are necessary to ensure convenience for employees and voters during elections. MCX to resume trading in the evening While equity markets remain closed for the entire day, the Multi Commodity Exchange (MCX) will operate partially. Trading will remain closed during the morning session due to voting, but evening trading in bullion contracts such as gold and silver will resume. Some agricultural commodities will be traded until 9 PM. What is a settlement holiday? On a trading holiday, buying and selling of securities is completely halted. On a settlement holiday, trading continues as usual, but the settlement process—credit of shares to demat accounts or receipt of funds for sold shares—is temporarily paused.