MUMBAI Dec 29 The Reserve Bank of India said on
Thursday it would allow the trading of bond options starting
Jan. 31, 2017, in the latest move by the central bank to develop
the country's debt markets.
The RBI said market participants would be allowed to trade
both exchange-traded and over-the-counter bond options,
including for market-making purposes.
The move had long been expected after an RBI panel proposed
in February that bond options be introduced to provide more
hedging options for investors.
India has been keen to develop its fixed income markets and
imposed revamped trading rules for bond futures in January 2014.
(Reporting by Rafael Nam; Editing by Biju Dwarakanath)