Bond Forward in G-Secs
The RBI’s Bond Forward Directions came into effect from 2 May 2025.
- On 21 February 2025, the Reserve Bank of India (“RBI”) issued directions to permit bond forwards in government securities by way of the Reserve Bank of India (Forward Contracts in Government Securities) Directions, 2025 (“Bond Forward Directions”).
Bond Forwards
Definition
- Bond forwards are financial contracts between two parties to buy or sell government bonds (central or state) at a pre-determined price on a future date.
Purpose
- Help long-term investors (e.g., insurance companies) hedge interest rate risk.
- Improve cash flow planning.
- Contribute to the development of the bond derivatives ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Already a Member? Login here
Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Economy Watch
- 1 New Maritime Digital Initiatives: Powering Maritime Efficiency
- 2 Financial Stability Report
- 3 SEBI Tightens Timelines for Rebalancing Mutual Fund Portfolios
- 4 RBI Relaxes PSL Norms for Small Finance Banks
- 5 Statistical Report on Agriculture and Allied Sectors
- 6 Rapid Expansion of India's Startup Ecosystem
- 7 RBI Introduces STRIPS in State Government Securities
- 8 Sagarmala Finance Corporation Limited: India’s First Maritime NBFC
- 9 India’s First International Agri Hackathon
- 10 Viksit Krishi Sankalp Abhiyan