National and Bombay Stock Exchanges will offer new IRF bonds that can be traded from 31 July. In a press release both these exchanges said that these IRF bonds will have separate maturity with different interest rates. IRF contract based on 8.27% central government security maturing on June 9, 2020.The second IRF contract based on 7.88% government bond maturing on 19 March 2030. Let’s see the details of NSE and BSE launched new IRF contracts.
NSE and BSE Launched New IRF Contracts
These two IRFs are available for trading from 31 July 2015. IRF contract is a mutual agreement between buyer and seller for future delivery of the instrument at a price fixed every Thursday. These IRF contracts will help traders minimize the risk associated with interest rates.
Generally interest rates will be affected by Reserve Bank of India policies. Earlier in May 2015 new IRFs with 10 year maturing date has been introduced that will expire in 2025.
These are contract specifications that can be traded at National and Bombay stock exchange at Normal trading hours Form 9:00 Am to 5:00 Pm on trading days(Monday to Friday).