RBI panel recommends guidelines for bond options | Reuters

MUMBAI A central bank panel has issued recommendations for introducing bond options in India that include simple structured contracts and allowing companies to trade up to 50 million rupees ($736,024.73) without documented underlying exposures.

The working group, set up by the Reserve Bank of India, has called for introducing a call and put option format for trading over-the-counter (OTC) as well as on exchanges, the panel said in its report.

"To begin with, simple call and put options, caps, floors, collars and swaptions may be permitted. Complex structures may be introduced subsequently," it said.

All domestic entities with an underlying interest rate risk may be allowed to trade these "interest rate options," the report said.

The RBI called for comments on its report by Feb. 26 and will issue final guidelines by end-March.

India's central bank currently allows trading of bond futures, and had long been expected to introduce options in India.

For a full report, see: [bit.ly/1KAKfde]

($1 = 67.9325 rupees)

(Reporting by Neha Dasgupta; Editing by Anupama Dwivedi)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Feb 09, 2016 01:45 AM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See