Brief Overview:
Following the release of the draft directions for IRD derivatives in June 2025, RBI has now released the final set of directions that would govern the IRD derivatives market. These directions replace the erstwhile directions of 2019.
The directions shall come in force March 1, 2026.
Technical Details:
Key Highlights
1) Reporting of IRD transactions undertaken globally by the offshore related parties of the market-maker in India.
2) Expanded eligibility for market-makers, to include NBFC-ULs.
3) Streamlined product offerings, to include foreign currency-settled IRDs.
Takeaways:
This is a move to further enhance transparency in ₹ IRD market, prompted by significant market developments, including the introduction of new products and increased participation.
For further details, please see:
RBI (Rupee Interest Rate Derivatives) Directions, 2025
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