Brief Overview:
A comprehensive review of the IRD Directions was undertaken, and a draft proposal has been prepared to align it with the developments taken place, introducing few changes.
The Reserve Bank of India (RBI) has released the draft Master Direction – Rupee Interest Rate Derivatives (IRD), 2025.
Comments to be sent by 7th July 2025.
Technical Details:
Key changes proposed:-
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.
4) Price Value of a Basis Point cap introduced for non-resident transactions undertaken for non-hedging purposes.
For further details, please see:
https://website.rbi.org.in/documents/87730/14317374/Rupee+IRD+Directions+draft.pdf
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