Reserve Bank of India has proposed allowing foreign portfolio investors (FPIs) to undertake exchange-traded rupee interest rate derivatives transactions subject to an overall ceiling of Rs 5,000 crore.
Daily Current Affairs Quiz 2020
Key-Points
Interest Rate Derivatives (IRDs) are contracts whose value is derived from one or more interest rates, prices of interest rate instruments, or interest rate indices.
The proposed directions are aimed at encouraging higher non-resident participation, enhance the role of domestic market makers in the offshore market, improve transparency, and achieve better regulatory oversight, according to the central bank.
