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 Government Expands Coverage of RELIEF Scheme
- 2 Government Notifies Conditional Concessional Customs Duty for SEZ
- 3 Kandla Port Upgrades Methanol Bunkering Capabilities
- 4 Kalai-II Hydro Electric Project
- 5 CSIR Transfers Indigenous Bio-Bitumen Technology
- 6 Cabinet Approves Bharat Maritime Insurance Pool
- 7 India Achieves Record Growth in Wind Energy in FY 2025-26
- 8 Government Notifies Startup India Fund of Funds 2.0
- 9 India’s Fisheries Sector
- 10 Mohra Power Project
