India's stock market holiday calendar has come under renewed scrutiny after the chief executive of the National Stock Exchange of India, Ashish Chauhan, addressed criticism over the closure of markets for Mumbai's municipal elections. Commenting on the issue, the NSE CEO said that market shutdowns tied to civic or democratic events are part of India's institutional framework and must be viewed in that context.
"Every country follows its own democratic processes," the CEO said, adding that decisions taken by authorities should be respected, and that India has established systems guiding such actions.
The remarks follow a public exchange on social media between Nithin Kamath, co-founder and CEO of Zerodha, and Samir Arora, founder of Helios Capital, which reignited a long-standing debate over whether Indian markets shut too frequently.
Both the NSE and the Bombay Stock Exchange were closed on January 15 for elections to Mumbai's civic body, the Brihanmumbai Municipal Corporation. Trading was halted across equity, derivatives, commodity segments and electronic gold receipts.
Kamath questioned the rationale for closing exchanges with significant international participation for a local election, arguing that such decisions overlook wider market implications and could affect India's credibility with global investors. He also cited Charlie Munger, pointing to incentive structures that allow such holidays to persist.
Arora countered by challenging the assumption that fewer holidays automatically make markets more globally aligned. He pointed to instances when Indian markets have opened on non-working days, such as Sundays, for major events like the Union Budget, arguing that these too could disadvantage overseas investors.
His response reframed the discussion around predictability rather than simply reducing the number of holidays.
The January 15 closure was announced to allow participation in civic voting by a large section of the financial services workforce, including brokers, traders and exchange personnel. With the latest closure, Indian stock exchanges will observe 16 trading holidays in 2026, excluding weekends.
Other Highlights
IPO Timeline
The NSE CEO also provided clarity on the exchange's long-awaited IPO. He said the application has been accepted "in principle", but a formal written no-objection certificate (NOC) from regulators is still awaited.
Once the NOC is received, preparation of the draft red herring prospectus (DRHP) is expected to take three to four months, followed by a Securities and Exchange Board of India review period of two to four months. Overall, the IPO could take six to eight months after the NOC, though the exact timing depends largely on regulators and third parties rather than internal execution.
Budget Expectations
On the Union Budget, the NSE CEO said modern budgets are increasingly focused on managing government revenues and spending. With GST and the Direct Tax Code in place, room for sweeping tax changes is limited.
While investors continue to hope for cuts in securities transaction tax (STT), lower long-term capital gains (LTCG) tax and possible GST relief, he cautioned that such measures directly affect the government's ability to fund social programmes—underscoring the delicate balance policymakers must strike between investor expectations and fiscal priorities.
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