Working Group to enhance secondary market liquidity in G-Sec and Interest Rate Derivatives Markets

The Reserve Bank has set up a Working Group (Chairman: Shri R. Gandhi) comprising representatives from market and RBI officials to examine and suggest ways for enhancing secondary market liquidity in G-Sec and Interest Rate Derivatives markets. The Terms of Reference of the Group are:

1. To analyse the evolution of the markets for G-Sec and Interest Rate Derivatives in relation to their depth and breadth;

2. To study the determining and influencing factors on liquidity of G-Sec and Interest Rate Derivatives from the perspective of primary market, secondary market and Interest Rate Derivatives Market;

3. To examine the factors enabling and inhibiting the secondary market liquidity in the G-Sec market, especially across the sovereign yield curve, and suggest ways to strengthen/address them;

4. To examine the factors enabling and inhibiting the growth of the Interest Rate Derivatives market and suggest ways to strengthen/address them;

5. To suggest measures for promoting retail participation in G-Sec market; and

6. To examine all other related issues.

Suggestions/comments in this regard may be mailed by January 17, 2012. 

It may be recalled that the Reserve Bank had announced the setting up of a Working Group comprising representatives from various stakeholders to examine and suggest ways for enhancing secondary market liquidity in G-Sec and Interest Rate Derivatives markets in the Second Quarter Review of Monetary Policy 2011-12.

Ajit Prasad
Assistant General Manager

Press Release : 2011-2012/952