Google

Monday 8 December, 2008

SEBI to allow allow exchange-traded interest futures

After the launch of the futures for exchange rates between the US dollar and the Indian Rupee, The Securities and Exchange Board of India (Sebi) will allow exchange-traded interest rate futures in January, a senior official said on Monday.

“We are on track to launch interest rate futures. It will be launched by January”, T.C. Nair, director at the markets watchdog told an industry conference. Sebi is also considering launching exchange-traded corporate bonds and would unveil it in a “couple of months”, he added. “We are looking at an exchange-traded corporate bond market, because there is more transparency and manipulations are not possible,” Nair said.

Nair also hinted at the possibility of a fourth exchange for currency futures in the near future. “There are some banks and financial institutions which have applied and we are considering their proposal,” he said.

Home loans at a concessional rate of 9.5% for 1st five years

Public sector banks (PSBs) are set to offer home loans of up to Rs20 lakh at a concessional rate of 9.5% for a period of five years as part of the government’s fiscal stimulus package announced on Sunday to spur spending and bolster sagging economic growth.

All new home loans advanced by state-owned banks until 30 June will come at the 9.5% rate, which will be reset five years later depending on the prevailing trend, according to two senior bankers involved in devising the package who didn’t want to be named.