Market regulator Securities and Exchange Board (Sebi) today called for reforms in the underlying market and said regular issuance of government bonds across maturities can go a long way in achieving this by way of increasing liquidity.
"The success of the derivatives market is dependent on the underlying market, which has to be liquid. There have to be reforms in the underlying market as well. There should be regular issuance of government bonds across maturities to make the underlyin market of interest rate futures more liquid," Sebi Chairman UK Sinha said.
Sinha was speaking at the launch of interest rate futures (IRFs) on the National Stock Exchange.
He refused to take a question on media reports which said that he got a two-year extension.
Sinha said almost 34 per cent of the public bonds issued by government were held by the banking system. Unless they participate, any produce has little chance to succeed, he said, adding that the three earlier attempts in last 11 years to launch these products failed. Read more..
"The success of the derivatives market is dependent on the underlying market, which has to be liquid. There have to be reforms in the underlying market as well. There should be regular issuance of government bonds across maturities to make the underlyin market of interest rate futures more liquid," Sebi Chairman UK Sinha said.
Sinha was speaking at the launch of interest rate futures (IRFs) on the National Stock Exchange.
He refused to take a question on media reports which said that he got a two-year extension.
Sinha said almost 34 per cent of the public bonds issued by government were held by the banking system. Unless they participate, any produce has little chance to succeed, he said, adding that the three earlier attempts in last 11 years to launch these products failed. Read more..
Source: Hindi News
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