The Hindu Business Line : Exchange traded interest rate futures launch on track: SEBI official

New Delhi, Dec. 8 The launch of exchange-traded interest rate futures slated for January 2009 was very much on track despite the ill-winds of global financial meltdown blowing across emerging markets, a top official of the Securities and Exchange Board of India said.

“We are on track to launch interest rate futures. It will be launched in January,” Dr T.C. Nair, a whole-time member of SEBI, said at an Assocham event here.

He also expressed confidence that exchange traded corporate bond markets would take off in a big way in the coming months and added that SEBI would support this reform in the financial sector.

Issues such as absence of uniform stamp duty for corporate bonds are coming in the way of the country introducing exchange-traded bonds.

Mr Nair noted that the average over-the-counter trade in corporate bonds ranged between Rs 300 and Rs 400 crore every day .Most trades in the corporate debt market happen through private placements. An exchange traded corporate bond market will help create a liquid market for bonds and enable retail investors to participate, he said.

IIFCL Chairman and Managing Director, Mr S.S. Kohli, said development of the exchange traded corporate bond market was essential for the development of infrastructure sector in the country.

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Exchange traded interest rate futures launch on track: SEBI official