NSE launches interest rate options on 10-year govt bonds; first day of launch witnesses turnover of 5,926 contracts
Rival bourse BSE launched trading in interest rate options based on government securities in August this year.
RBI move on ECB is good; will ease pressure on cost of borrowing, encourage firms to borrow more from market
The idea is to have it more predictable so that companies can play around with their choice of borrowing.
RBI eases hedging norms for external commercial borrowings by reducing provision to 70% from current 100%
The relaxed norms will apply to the ECBs with a maturity period between 3 and 5 years, the RBI said in a notification
How does an average Indian hedge his or her currency risk? Using currency futures is one way but the cost of rollovers is high and many may not have the knowledge or time or both to trade in currency futures.
The rupee's tumble and the surge in volatility is raising fears among policymakers and investors that smaller Indian companies are not adequately hedged, especially those with large overseas borrowings due for redemption in coming months.
D.K.Aggarwal, Chairman and MD- SMC explains how SunGard's 'Kiodesk Risk Workbench' allows its clients to hedge, thus helping them to reduce potential losses.