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Floating rate bonds to be issued

October 24, 2008

Government Securities Market

(1) Floating rate bonds (FRBs) to be issued at an appropriate time taking into account the prevailing market conditions.

(2) Government of India 7 per cent Savings Bonds, 2002, the 6.5 per cent Savings Bonds, 2003 (non-taxable), and the 8 per cent Savings Bonds, 2003 (taxable) schemes allowed for pledge or hypothecation or lien of these bonds as collateral for obtaining loans from scheduled banks.

(3) The scheme for Non-Competitive Bidding Facility of State Development Loans (SDLs) to be operationalised by end-December 2008.

Development of Market Infrastructure

(1) Interest rate futures (IRFs) contracts as recommended by the Working Group on Interest Rate Futures to be launched in early 2009 along with the supporting changes in the regulatory regime.

(2) Access to NDS-OM through the Constituent SGL (CSGL) route further extended to investors such as other non-deposit taking NBFCs, corporates and FIIs.

(3) Arrangements for settlement of primary auction bidding under the multi-modal settlement mechanism on the anvil.

(4) CCIL to operationalise a clearing and settlement arrangement for OTC rupee interest rate derivatives on a non-guaranteed basis within a month, and on a guaranteed basis within three months.

Image: A man walks out of The Reserve Bank of India building in Mumbai. | Photograph: Sajjad Hussain/AFP/Getty Images

Also read: How to make tax gains on stock market losses

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