BSE to launch new IRF contracts on January 11

MUMBAI: Leading stock exchange BSE will launch a new interest rate futures (IRF) contract offering 7.79 per cent yield on government bonds on January 11.

The contract would mature on January 11, 2026, BSE said in a statement today.

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. Banks, primary dealers, mutual funds, insurers, FIIs, corporates and brokers, as well as retail investors trade in this product.

"The exchange shall be introducing Interest Rate Futures contracts based on 7.79 per cent government of India bond maturing on January 11, 2026 with effect from January 11, 2016," BSE said.

"Spread contracts shall be available for trading with effect from January 12, 2016," it added.