By IANS,
Kolkata : Market regulator Securities and Exchange Board of India (SEBI) is planning to allow interest rate futures by next month, a senior official said here Saturday.
“We are currently working on interest rate futures and the product should be introduced by August-end,” M.S. Sahoo, a whole-time member of SEBI, said while addressing a conference on capital markets here.
The purpose of these derivatives, based on 10-year government bond yields, is to help banks, insurance firms and even households guard against volatility in interest rates.
The joint Reserve Bank of India and SEBI technical committee had in June recommended allowing interest rate derivatives based on 10-year government bond yield.