“Show Me the Incentive”: Nitin Kamath Sparks Debate Over Stock Market Holiday During Maharashtra Municipal Elections

The stock market remained closed today in Maharashtra due to municipal elections, sparking a heated discussion online after Zerodha CEO Nitin Kamath questioned the rationale behind the holiday.

Kamath, in a social media post, expressed concern over the closure, noting that the Indian markets still have a long way to go in gaining global investor confidence. Initially, January 15 was designated as a settlement holiday, but last week, the exchanges issued a revised circular confirming that trading would remain completely suspended across all segments.

In his post on X (formerly Twitter), Kamath asked why a local body election warranted a market-wide shutdown. He argued that markets are interconnected globally, and closing them for a municipal election reflected poor planning.

Quoting the late investor Charlie Munger, Kamath wrote: “Show me the incentive, and I will show you the result.” His remark implied that such holidays exist because no major stakeholder has sufficient incentive to challenge them. He added that measures like these highlight how far Indian markets still need to evolve before being taken seriously by global investors.

Kamath’s post immediately drew responses from the financial community. Samir Arora, founder of Helios Capital, questioned the consistency of such arguments. Arora responded on X: “I hope you will say the same on February 1 if the market remains open on a Sunday.” He referenced the government’s decision to keep the markets open on budget day, noting that if the exchanges are internationally linked, keeping the market open for foreign investors on a Sunday could also be considered unconventional.

The exchange of views underscores the ongoing debate about balancing local regulatory decisions with global market expectations.