For all those who were longing for a chance to play with the many Fixed Income products available in the global markets but hitherto unavailable in the Indian markets, RBI has come out with a lot of good news today.
Highlights of the Financial Markets Proposals by RBI (From Reuters):
* To start interest rate futures on 5-year and 2-year securities as well as 91-day T-bills
* Final guidelines norms on below one-yr NCD issuance by end-June
* Draft report on plain-vanilla over-the-counter credit default swaps for corporate bonds by end-July
* Final guidelines on over-the-counter forex derivatives by end-June
* Plain vanilla currency options on spot dollar-rupee exchange rate to be allowed on stock exchanges
* Banks to be allowed to classify investments in non-SLR bonds issued by infrastructure companies, with minimum 7 years maturity in held-to-maturity category
FINANCIAL MARKET INFRASTRUCTURE
* To introduce reporting platform for secondary market dealers in CDs and CPs.
* To set up working group to work out single point reporting system for all over-the-counter rate and forex derivative deals.
FOREIGN BANKS AND NEW BANKS
* Discussion paper on the mode of presence of foreign banks in India through branch or wholly-owned subsidiary model to be prepared by September 2010
* Discussion paper on licensing new banks by end-July
Looking forward to a busy and Exciting FY11.
