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BSE to launch interest rates futures on overnight MIBOR

28 Mar 2019 Evaluate

Bombay Stock Exchange (BSE) has received approvals to launch interest rates futures on overnight MIBOR (Mumbai Inter-Bank Offer Rate). In this regard, the bourse has got clearance from the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI). With the introduction of interest rates futures on overnight MIBOR, market participants will be able to forecast and manage interest rate risk on the BSE.

MIBOR is the interest rate at which banks borrow from one another for short term purposes. Financial Benchmarks India announces the overnight MIBOR on a daily basis and it is computed by the Clearing Corporation of India (CCIL). MIBOR rate is based on trade-weighted interbank call money transactions on the Negotiated Dealing System call platform of CCIL between 9 am and 10 am.

BSE provides an efficient and transparent market for trading in equity, debt instruments, derivatives, mutual funds. It also has a platform for trading in equities of small-and-medium enterprises (SME).


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