The Reserve Bank of India is engaged in bringing about
harmonisation between the over-the-counter (OTC) and exchange-traded
interest rate derivatives markets, said a senior central
are in advanced stages of preparing a report, which looks
at harmonisation of regulations for OTC and exchange traded
products in the derivatives segment," said Mr G.
Padmanabhan, RBI Regional Director, Andhra Pradesh, addressing
a gathering of senior bankers at a seminar on derivatives
organised by the Indian Banks' Association and the Fixed
Income Money Market and Derivatives Association of India
Padmanabhan declined to throw light on exactly what these
issues were, but it is known from the market that these
possibly pertain to settlement issues. As of now, settlement
on the OTC market is bilateral which may be routed through
Clearing Corporation of India to match the settlement
practice of the exchange-traded product, said a chief
dealer in a bond house.
The draft report will also have a checklist for banks
to fulfil before they are granted permission to trade
and act as market makers in this segment.
report would be ready in a couple of weeks, said Mr Padmanabhan.