SEBI Introduces Exchange Traded Interest Rate Derivative Contracts with 10-Year and 91-Day Maturities in India.

The Securities and Exchange Board of India (SEBI) announced the introduction of Exchange Traded Interest Rate Derivative Contracts in the Indian Securities Market. Initially, futures contracts will be introduced on a Notional Government Security with a 10-year maturity and a Notional Treasury Bill with a 91-day maturity. The contracts will require SEBI approval and must comply with specified disclosure requirements. Long Bond Futures and Notional T-Bill Futures will be cash settled, and risk containment measures will include portfolio-based margining, initial margin requirements, and exposure limits. Exchanges must provide detailed proposals for contract approval, including trading hours, risk protection mechanisms, and settlement procedures.

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