Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: VAT RATES :: VAT Audit :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: cpt :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: TDS
 
 
« Latest Circulars »
 Investment under PIS in M/s Eris Lifesciences Ltd. By FII/FPI Investment limit from 24 to 49 per cent and increase in NRI limit from 10 to 24 per cent
  Auction for Sale (Re-issue) of Government of India Floating Rate Bonds 2024
 Auction of Government of India Dated Securities August 21, 2017
 RBI to conduct 7 day Variable rate Reverse Repo auctions under LAF on August 21, 2017
 Resolution of Stressed Assets: Towards the Endgame (Urjit R. Patel, Governor - August 19, 2017 - Inaugural Session of the “National Conference on Insolvency and Bankruptcy: Changing Paradigm”, Mumbai)
 Eligible Credit Rating Agencies- Rating of Fixed Deposits by Infomerics Valuation and Rating Private Limited (IVRPL)
  Appointment of nominated counsel in the Hon’ble High Court of Delhi at New Delhi- Compliance of the Order dated 21.07.2017
 RBI-Core Banking Solution (CBS) Requirements for Urban Co-operative Banks (UCBs)
 RBI-Interest Subvention Scheme for Short Term Crop Loans during the year 2017-18
 Appointment of nominated counsel in the Hon’ble High Court of Delhi at New Delhi- Compliance of the Order dated 21.07.2017
 RBI releases Data on India’s International Trade in Services: June 2017

RBI seeks Comments on Working Group Report on introducing Interest Rate Options
February, 09th 2016

The Reserve Bank of India today released the Report of the Working Group on Introduction of Interest Rate Options in India (Chairperson: Prof. P.G. Apte). The key recommendations of the Group are:

  • To begin with, simple call and put Options, caps, floors, collars and swaptions may be permitted. Complex structures may be introduced subsequently.

  • Both OTC as well as exchange traded options may be introduced. While in the OTC segment only European options may be permitted, both American and European structures may be permitted on Exchanges.

  • Fixed Income Money Market and Derivatives Association of India (FIMMDA)/Financial Benchmark India Private Limited (FBIL) may come out with the list of eligible domestic money or debt market rates as benchmarks like G-Sec, T-Bills, MIBOR,OIS, MIFOR, IRF etc.

  • While banks, PDs and other regulated entities having sound financials and prudent risk management may be allowed as market makers subject to the approval of concerned regulator, all domestic entities having underlying interest rate risk may be permitted as users.

  • While no documentation relating to underlying exposure may be required for exposures upto Rs. 5 crore, large corporates may also be allowed to take hedging positions for their anticipated interest rate exposures.

Comments on the recommendations of the Group may be sent to email by February 26, 2016. Final guidelines will be issued by the end March, 2016 taking into account the feedback received.

Background

Currently, the only interest rate derivatives (IRD) permitted in India are Interest Rate Swap (IRS) and Forward Rate Agreement (FRA) in the OTC segment and Interest Rate Futures (IRF) on the Exchanges. IRS market has evolved over a period of time and is fairly liquid. Trading in IRF market has gradually increased with wider participation by different categories of participants. These IRDs can be used by the banks and other market participants to manage market risk effectively in their books. However, the financial entities, including banks, do not have any instruments to manage the embedded options on their balance sheets.

The Technical Advisory Committee (TAC) of the Reserve Bank on Financial markets, at its meeting held on April 21, 2015 had constituted a Working Group (Chairman: Prof P.G. Apte) to comprehensively look into all relevant issues and give recommendations on the framework for introduction of Interest Rate Options in India.

Alpana Killawala
Principal Adviser

Press Release : 2015-2016/1873

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions