Latest news with #RupeeIRD
Time of India
9 hours ago
- Business
- Time of India
RBI's new step on Rupee Interest Rate Derivatives; issues draft norms
The Reserve Bank of India (RBI) on Monday released a fresh set of draft regulations aimed at updating the rules for Rupee Interest Rate Derivatives (IRD), in a move designed to bring the regulatory framework in line with evolving market practices and increased participation from non-resident entities. The current framework, last revised in June 2019, is being overhauled to reflect the changes in the financial landscape, including the introduction of new products and a rise in the non-residents involvement in the market. 'Accordingly, a comprehensive review of the IRD Directions was undertaken, and the draft directions have been prepared to align it with the market and other related developments,' the RBI said while releasing the Draft Master Direction, Reserve Bank of India (Rupee Interest Rate Derivatives) Directions, 2025. Interest Rate Derivatives refer to financial contracts whose value is based on one or more rupee interest rate, prices of rupee interest rate instruments, or rupee interest rate indices. Among the proposed changes, the draft allows non-residents to undertake IRD transactions through their central treasuries or group entities, where applicable. However, market-makers must ensure such entities are properly authorised to act on behalf of the end user. The draft also proposes to simplify existing reporting requirements, aiming to ease the compliance load on market participants. In addition, the apex bank plans to introduce a new mandate requiring the reporting of Rupee IRD transactions carried out globally, in an effort to improve transparency across the market. The RBI has invited feedback from banks, market participants, and other interested parties on the draft by 7 July 2025. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
10 hours ago
- Business
- Time of India
RBI's new regulation? Issues draft norms on Rupee interest rate derivatives; allows non-resident to undertake transactions
The Reserve Bank of India (RBI) on Monday released a fresh set of draft regulations aimed at updating the rules for Rupee Interest Rate Derivatives (IRD), in a move designed to bring the regulatory framework in line with evolving market practices and increased participation from non-resident entities. The current framework, last revised in June 2019, is being overhauled to reflect the changes in the financial landscape, including the introduction of new products and a rise in the non-residents involvement in the market. 'Accordingly, a comprehensive review of the IRD Directions was undertaken, and the draft directions have been prepared to align it with the market and other related developments,' the RBI said while releasing the Draft Master Direction, Reserve Bank of India (Rupee Interest Rate Derivatives) Directions, 2025. Interest Rate Derivatives refer to financial contracts whose value is based on one or more rupee interest rate, prices of rupee interest rate instruments, or rupee interest rate indices. Among the proposed changes, the draft allows non-residents to undertake IRD transactions through their central treasuries or group entities, where applicable. However, market-makers must ensure such entities are properly authorised to act on behalf of the end user. The draft also proposes to simplify existing reporting requirements, aiming to ease the compliance load on market participants. In addition, the apex bank plans to introduce a new mandate requiring the reporting of Rupee IRD transactions carried out globally, in an effort to improve transparency across the market. The RBI has invited feedback from banks, market participants, and other interested parties on the draft by 7 July 2025. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
12 hours ago
- Business
- Time of India
RBI issues draft norms on Rupee Interest Rate Derivatives
The Reserve Bank of India on Monday issued draft regulations for Rupee Interest Rate Derivatives to align the extant regulatory framework with the market and other related developments. The extant regulatory framework for Rupee Interest Rate Derivatives (IRD) was issued in June 2019. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pennsylvania: A New Metal Roof Costs Less Than You Think Metal Roof USA Learn More Undo Since then, there have been several new developments in the market, including the emergence of new products as well as the participation of non-residents in the market. "Accordingly, a comprehensive review of the IRD Directions was undertaken, and the draft directions have been prepared to align it with the market and other related developments," RBI said while issuing the 'Draft Master Direction -Reserve Bank of India (Rupee Interest Rate Derivatives) Directions, 2025'. 'Interest Rate Derivative' means a financial derivative contract whose value is derived from one or more rupee interest rate, prices of rupee interest rate instruments, or rupee interest rate indices. Live Events According to the draft, a non-resident may undertake IRD transactions through its central treasury or its group entity, where applicable. "In case of such transactions, the market-maker shall ensure that the central treasury / group entity is appropriately authorised by the user to deal for and on its behalf," said the draft on which the RBI has sought comments from banks, market participants and other interested parties by July 7, 2025. The reporting requirements under the draft directions have also been rationalised to reduce compliance burden. Separately, a requirement for reporting of IRD transactions undertaken globally is proposed to be introduced with a view to enhancing transparency in the Rupee IRD market.
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Business Standard
12 hours ago
- Business
- Business Standard
RBI releases draft regulations on rupee interest rate derivatives
The Reserve Bank of India on Monday issued draft regulations for Rupee Interest Rate Derivatives to align the extant regulatory framework with the market and other related developments. The extant regulatory framework for Rupee Interest Rate Derivatives (IRD) was issued in June 2019. Since then, there have been several new developments in the market, including the emergence of new products as well as the participation of non-residents in the market. "Accordingly, a comprehensive review of the IRD Directions was undertaken, and the draft directions have been prepared to align it with the market and other related developments," RBI said while issuing the 'Draft Master Direction -Reserve Bank of India (Rupee Interest Rate Derivatives) Directions, 2025'. 'Interest Rate Derivative' means a financial derivative contract whose value is derived from one or more rupee interest rate, prices of rupee interest rate instruments, or rupee interest rate indices. According to the draft, a non-resident may undertake IRD transactions through its central treasury or its group entity, where applicable. "In case of such transactions, the market-maker shall ensure that the central treasury / group entity is appropriately authorised by the user to deal for and on its behalf," said the draft on which the RBI has sought comments from banks, market participants and other interested parties by July 7, 2025. The reporting requirements under the draft directions have also been rationalised to reduce compliance burden. Separately, a requirement for reporting of IRD transactions undertaken globally is proposed to be introduced with a view to enhancing transparency in the Rupee IRD market. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
