LIC, CENTRAL BANK TO BOOST TRADE IN INTEREST FUTURES

The Interest Rate Futures (IRFs) trading in the country will get a boost in coming days, as Life Insurance Corporation (LIC) and Central Bank of India have agreed to provide support to the exchange-traded product. LIC and Central Bank of India will ensure adequate liquidity on the National Stock Exchange (NSE) , where IRFs are traded.

LIC will purchase the Government of India (GOI) securities from those who want to liquidate the securities received against their IRF obligations at a small yield spread over the Fixed Income Money Market and Derivative Association (FIMMDA) valuation rates. On the other hand, Central Bank of India would offer securities from its book to members who want to meet their IRF obligations.

Source: http://www.business-standard.com/india/news/lic-central-bank-to-boost-trade-in-interest-futures/380271/