Welcoming the move SMC Capitals Equity Head Jagannadham Thunuguntla said, "It is a right step by SEBI. This will activate the debt market in the country." The guidelines further said stock exchanges will have to seek approval of the SEBI before starting trading in interest rate futures in their currency derivative segment.

1. SEBI issues guidelines for interest rate futures
Fri, Aug 28 10:22 PM
Mumbai, Aug 28 (PTI) Market regulator SEBI today issued guidelines for trading in
interest rate futures under which the 10-year government securities can be traded on
bourses, a development that will deepen the debt market. As per the guidelines, the
contract size for futures trading would be Rs 2 lakh with a maximum maturity period of 12
months.
The contract cycle, it added, would consist of four fixed quarterly contracts expiring in
March, June, September and December. The notional coupon rate for such trade, the
guidelines said, would be 7 per cent to be compounded every six months.
Welcoming the move SMC Capitals Equity Head Jagannadham Thunuguntla said, "It is a
right step by SEBI. This will activate the debt market in the country." The guidelines
further said stock exchanges will have to seek approval of the SEBI before starting trading
in interest rate futures in their currency derivative segment.
The clearing system for the interest rate futures, it added, would be the same as for the
currency derivatives segment. The exchanges will also be required to disclose upfront the
composition of the basket of deliverable grade securities and the associated conversion
factors for each of the quarterly contract.