Sunday, December 15, 2013

Exchange Traded Cash Settled Interest Rate Futures (IRF) permitted

The Securities and Exchange Board of India (SEBI) has decided to permit stock exchanges
to introduce cash settled Interest Rate Futures on 10-Year Government of India Security. Two
different designs (Option-A: Coupon bearing Government of India security as underlying and
Option-B: Coupon bearing notional 10-year Government of India security with settlement
price based on basket of Securities as underlying) are permitted for cash settled futures on 10-year
Government of India (GoI) Security. Exchanges are permitted to launch contracts on either one
or both of these options.

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