Comments
The interest rate futures (IRF) on 91-day T-Bills clocked a volume of around Rs 730 crore on the National Stock Exchange (NSE) on the first day of trading on Monday, according to bond market dealers.
About 8-10 banks participated in trading in the 91-day IRF. “It will take time for market participants to get their eye in and build-up volumes in this product,” said a dealer.
The pricing of the 91-day IRF could prove useful as a benchmark for the auction of the 91-day T-Bill next week, he added.
The new product has been launched at a time when there is a pressing need for a credible institutional hedging mechanism in view of the rising interest rates.
The 91-day IRF seeks to help banks, mutual funds and corporates to hedge their exposure to interest rates and cover the short-term interest rate risk. Foreign institutional investors too can participate in trading, but only for hedging purposes.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.