MSEI set to begin new interest rate futures contracts

Metropolitan Stock Exchange of India Ltd (MSEI) will introduce on Tuesday new 10-year interest rate futures (IRF) contracts offering 6.79 per cent yield on central government bonds.

The contracts would mature in 2027 and are available to entities like banks, primary dealers, mutual funds, insurers, FIIs, corporates and retail investors, for trading on the exchange's platform, MSEI said in a statement on Monday.

"The stock exchange will launch the new IRF contracts on May 16," MSEI said.

BSE and NSE would also be launching similar contracts on Tuesday. An IRF is a contract between a buyer and a seller agreeing to the future delivery of any Interest bearing asset such as government bonds.

IRF contracts are offered under 6 year, 10 year and 13 year maturity buckets.