Markets

Nod for BSE’s interest futures on MIBOR

Our Bureau Chennai | Updated on March 27, 2019 Published on March 27, 2019

 

The BSE has received approval from SEBI and RBI to introduce interest rates futures (IRF) on Overnight MIBOR (Mumbai Inter-bank Offer Rate) consecutively to provide participants an opportunity to manage risk exposures. MIBOR is the interest rate at which banks borrow from another for short-term purposes. Financial Benchmarks India announces the overnight MIBOR on a daily basis and is computed by the Clearing Corporation of India.

The MIBOR rate is based on trade-weighted inter-bank call money transactions on the Negotiated Dealing System’s call platform. Thus, the reference rate is based on the actual traded rates as opposed to polled rates.

Published on March 27, 2019
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