Metropolitan Stock Exchange India (MSEI) has introduced trading in Sovereign Gold Bonds and interest rate futures (IRFs) to provide a diversified product bouquet to market participants.

The Sovereign Gold Bonds will be available under the equity capital market segment. These are spot contracts with delivery-based settlement, coupon of 2.75 per cent, and tenure of eight years. All six tranches of the Sovereign Gold Bonds issued by the RBI till date are available for trading on the MSEI platform for all categories of market participants. The bonds provide an opportunity for retail investors to buy gold in small quantities of one gram in dematerialised form.

New IRF contracts are introduced for the underlying 6.79 per cent Government of India bond maturing in December 2029 (under the 13-year maturity bucket) with effect from January 10. The MSEI now offers IRF contracts on all the nine Government of India bonds, as approved by the regulators. More contracts at different maturity points provide a better yield curve to investors for their hedging and trading requirements. Further, calendar spread contracts based on these IRFs are also available for trading in the currency derivative segment of the exchange.

The MSEI is implementing a business revival plan to make capital utilisation most efficient on the platform for its members. The transaction charges of the exchange have been re-calibrated to aid greater participation for improved liquidity and trade efficiency.

Abhijit Chakraborty, Chief Operating Officer, MSEI, said it is part of the strategy to fill in the market gaps, ease of connectivity and compliances and customer service orientation.

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