hedging, a Reserve Bank official said.
overnight index swaps (OIS), which has some volumes, there is
not much traction in other exchange-traded or over-the-counter
"One reason why the participation is not happening, I
don't know whether it is a cause or effect, is the absence of
hedging culture," RBI chief general manager (financial markets
regulation department), T Rabi Sankar, said at a CII financial
Recently, RBI came out with a draft guideline to allow
non-residents to hedge their rupee interest rate risk
flexibly using any available interest rate derivatives
Sankar said one of the issuse that needs to be addressed in
"Some amount of diversification is happening. We are
trying to expedite that and also trying to get more foreign
investors (in the government bond market)," he said.
According to him, India should not follow practices of
the developed market to improve efficiency of its
"If you want financial markets efficiency in India,
don't read the book from developed market. You need to have
your own book. Blindly importing policies is more likely than
not to be a misadventure," he added.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)