The Reserve Bank of India (RBI), on Thursday, announced the constitution of a working group on interest rate futures to be headed by RBI Executive Director V K Sharma.
The panel would analyse the experience with interest rate futures so far and focus on product design issues. Besides, it would revisit recommendations of the earlier committees while making its own recommendations.
Rate swaps
On the suggestion of the Technical Advisory Committee (TAC) on money, foreign exchange and government securities markets, RBI has set up a working group.
The goup would also examine whether regulatory guidelines for banks for interest rate futures need to be aligned with those for their participation in interest rate swaps. It would also examine the scope and extent of the participation of non-residents, including Foreign Institutional Investors (FIIs), consistent with the policy applicable to the underlying cash bond market and consider other issues.
Other members include Neeraj Ghambir (Chairman, Fixed Income Money Market & Derivatives Association of India), Uday Kotak (CEO, Kotak Mahindra Bank), A P Kurian (Chairman, Association of Mutual Funds in India), M M Lateef (SBI Deputy MD & CFO), T C Nair (Sebi Member), Ravi Narayan (MD, NSE) and Susan Thomas (Asst Professor, Indira Gandhi Institute of Development Research).
