Leading stock exchanges BSE and NSE will launch a new interest rate futures (IRF) contract offering 6.79 per cent yield on government bonds on May 16.
The contract would mature on May 15, 2027 the bourses said in two separate circulars 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.
"Interest rates futures contracts based on 6.79 per cent Central Government Security having maturity on May 15, 2027 will be made available for trading with effect from May 16, 2017," the bourses said.
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