Govt changes timing of overnight rate release with effect from Aug 4

India has pushed the timing of publishing an overnight benchmark rate by two hours, with effect from August 4, Financial Benchmark India said.

Financial Benchmark India will publish the daily Mumbai Interbank Offer Rate at 12:45 p.m. IST, instead of the current 10:45 a.m. IST, it said in a release dated July 18.

"The benchmark rate will be computed from actual traded data in the call money market for the first three hours of trading, i.e. from 9 AM to 12 Noon, instead of the first one hour of trading data presently used for computation of MIBOR," the FBIL said.

This move comes after FBIL started publishing a new overnight benchmark, the Secured Overnight Rupee Rate, which gets published daily at 12:45 p.m. IST.

SORR is computed from actual traded data in the tri-party repo market and the basket repo trades of the market repo segment for the first three hours of trading.

A committee set up by the Reserve Bank of India to review the MIBOR had recommended that to compute the rate, the first three hours of trades should be considered instead of the first one hour.

Since about 70 per cent-80 per cent of the daily traded volume in the call money market is transacted in the first three hours of trading, data from that duration would enhance the representativeness of the benchmark, according to the committee.