Calls On A Free Fall, Slip To 6 Per Cent

The zero-coupon paper drew considerable buying interest. According to ICICI securities, arbitrage window for about 10 paise was open in the 13.5-per cent 1998 (conversion) security.

A spot purchase and a subsequent 9-day ready forward till the ex-interest date offered a 10-paise discount to the ex-interest price.

Bankers were of the opinion that if the export refinance is removed, the 11-per cent benchmark will cease to be operative. "The rates in a tight money situation are likely to go beyond the 11-per cent mark when export refinance is withdrawn," said a money market operator.