The Reserve Bank of India (RBI), on Friday, released its final guidelines for 6-year and 13-year cash-settled Interest Rate Futures (IRF) on Government of India Securities with residual maturity of 4-8 years and 11-15 years, respectively.
The present notification amends the Interest Rate Futures (Reserve Bank) Directions, 2013. Besides, the RBI has also changed the residual maturity for the existing 10-year cash-settled IRF to 8-11 years from 9-11 years. This would provide market participants greater choice and flexibility to hedge their interest rate risk across different tenors.
Cash settled IRF on 10-year Government of India (GoI) Security, launched on the stock exchanges in January 2014, has received an encouraging response.
