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Swaps

 
An Interest Rate Swap (IRS) is a financial contract between two parties exchanging or swapping a stream of interest payments for a `notional principal’ amount on multiple occasions during a specified period. Such contracts generally involve exchange of a `fixed to floating’ or `floating to floating’ rates of interest. Accordingly, on each payment date - that occurs during the swap period - cash payments based on fixed/ floating and floating rates, are made by the parties to one another.
 
In India interest rate swaps are commonly traded on 2 benchmarks viz MIBOR and MIFOR. Scheduled commercial banks (excluding Regional Rural Banks), primary dealers (PDs) and all-India financial institutions (FIs) are free to undertake IRS as a product for their own balance sheet management or for market making. CCIL has, with effect from 28th March, 2014 commenced CCP clearing for IRS trades referenced to the MIBOR and MIOIS benchmark.
 
On 3rd August, 2015 CCIL launched an anonymous electronic trading platform for Interest Rate Swaps (IRS) referenced to Overnight MIBOR benchmark known as ASTROID (Anonymous System for Trading in Rupee OTC Interest Rate Derivatives). The system is available for trading from 9.00 am to 5.00 pm from Monday to Friday. The minimum lot size is Rs 5 Crs with a tick size of 0.0025%.
 
 
 

Latest News

India Consumer
India’s Consumer Price-based inflation rose to 5-month high of 5.00% in June compared to 4.87% a month prior. Core CPI accelerated to 6.45% in June from 6.18% a month ago.
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Wholesale inflation rose
Wholesale inflation rose to a 4 year high of 5.77% in June compared to 4.43% a month prior led by inflationary pressures from food and fuel items. Consequently, core WPI inched up to 4.76%, as compared to 4.40% in May,18.
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Growth in India
Growth in India’s Index of Industrial Production (IIP) slowed to 3.2% in May as against 4.8% in the previous month. Nonetheless, broad based sequential uptick was witnessed with Mining at 4.6%, Manufacturing at 4.5% and Electricity at 7.2%
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In its Third
In its Third Bi-monthly Monetary Policy Meeting, MPC-panel raised the policy repo rate by 25 basis points to 6.5% while maintaining neutral stance. Consequently, reserve repo rate stands at 6.25% while marginal standing facility (MSF) rate stands at 6.75%.
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Inflation inclusive
Inflation inclusive of HRA impact is projected at 4.6% in Q2, 4.8% in H2 FY19 (4.7% previous) and 5% in Q1 FY20. Growth projection for FY19 was maintained at 7.4% ranging7.5%-7.6% in H1 FY19 and 7.3%-7.4% in H2 FY19.
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