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Mumbai, Aug. 8 An RBI technical committee has suggested waiver of Securities Transaction Tax (STT) for trades in Interest Rate Futures.

The committee, in its final report released on Friday, said to ensure symmetry between cash market in government securities and interest rate futures, as also imparting liquidity to the market, deals in interest rate futures be exempted from STT.

The committee has recommended that banks be permitted to take trading positions in interest rate futures, subjects to prudential regulations, including capital requirements.

The committee also suggested that FIIs may be allowed to take long positions in the interest rate futures market, subject to the condition that the total gross exposure in the cash and the futures market does not exceed the extant maximum permissible cash market exposure limit.

More Stories on : Derivatives Markets | Taxation | Interest Rates | RBI & Other Central Banks

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