Zerodha co-founder Nithin Kamath criticised the closure of Indian stock exchanges on January 15 for Mumbai’s municipal elections, questioning the planning and warning it undermines global investor confidence.
Indian stock exchanges remained closed on January 15 as polling for municipal corporation elections took place across Maharashtra, including Mumbai. The suspension of trading drew sharp criticism from Zerodha co-founder Nithin Kamath, who flagged concerns over the decision and its wider implications.
Kamath questioned the rationale behind declaring a market holiday for a local civic election, pointing out that exchanges with international linkages should not be shut down for such reasons. “Indian stock exchanges are closed today for Mumbai's municipal elections. The fact that our exchanges, which have international linkages, are shut down for a local municipal election shows poor planning and a serious lack of appreciation for second-order effects,” he said.
Citing Berkshire Hathaway vice chairman Charlie Munger, Kamath added: “As Munger said: ‘Show me the incentive, and I will show you the outcome.’ The holiday exists because no one who matters has any incentive to oppose the market holiday.” He further remarked that such practices highlight how far India has to go before global investors take its markets seriously.
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how far India has to go before global investors take its markets seriously.
Both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) confirmed the holiday in official circulars, noting that trading across all segments was suspended. A statement referenced NSE circular NSE/FAOP/72262 dated January 12, 2026, which declared the January 15 holiday on account of municipal corporation elections in Maharashtra. Normal operations are scheduled to resume on January 16.
The closure affected settlement schedules, with exchanges informing participants of changes due to the holiday. Market participants were advised that trading would continue as usual from Friday.
Meanwhile, security was tightened in Mumbai ahead of the Brihanmumbai Municipal Corporation (BMC) elections. Police erected barricades at several locations and carried out vehicle checks to ensure smooth polling. Voting across 227 wards is scheduled until 5.30 pm, with counting of votes set for January 16.
