MCX-SX gets Sebi approval for IRF; launch this month

Following Sebi's approval to introduce Interest Rate Futures (IRF), MCX Stock Exchange (MCX-SX) today said that live trading in currency derivatives segment would start this month.

The exchange received nod from the Securities and Exchange Board of India (Sebi) today, it said.

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"With the expected turnaround in the economy, there will be a growing need to bring to table the entire range of products for meeting investor needs. Development of the Interest Rate Derivatives (IRD) market is an important step in placing the Indian markets on par with developed economies. We will soon take this segment live," MCX-SX vice chairman Thomas Mathew said in a statement.

Launch of cash-settled IRF will widen the market and provide a better option to market participants to hedge against volatile interest rates, the statement said. The product will benefit banks, brokerage houses,insurance companies and primary dealers, etc, it said.