4 Banks, 2 Pds To Foray Into Interest Rate Derivatives

Four banks and two primary dealers have been given permission to enter the interest rate derivatives market that will be launched by finance minister Jaswant Singh tomorrow.

The banks are State Bank of India, Punjab National Bank, Bank of Baroda and HDFC Bank. The two dealers that have been permitted to set up hedging positions in the market in the initial phase include IDBI Caps and PNB Gilts.

The launch of the interest rate futures market tomorrow comes after three postponements in the last couple of months