Abstract :

 History Of interest rate futures.

 What are different interest derivatives ?
 Why are they required and importance in current scenario?
 Examining reasons of failures of introduction of Interest derivatives in 2003
 New policies with came with interest derivatives in 2009.
 Different type of interest rate derivatives that were introduced
 Current different type of types in India
 Bases and methodologies.
 Comparison between india and global markets
 Future potential of interest derivatives special focus on india and growth of new products .
 References
An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a
notional amount of money at a given interest rate. It has been very popular right from the starting and
has been and is one of the largest derivatives largely used by corporate, banks, insurance companies,
primary dealers and provident funds as a hedging mechanism for their colossal pure-time-value-of-
money / credit-risk-free interest rate-risk exposure. In India Over The Counter (OTC) interest rate
derivatives were introduced in 1999. In June 2003 IRS, the NSE introduced the exchange-traded interest
rate futures (IRF) contracts in June 2003. But the response was not very good. In August 2009 Interest
rate derivatives were again introduced in a new format. In this paper reasons of failure with done of
Interest derivatives in 2003 and changes brought in 2009 have been discussed. A brief introduction of
various derivatives like Interest Rate Forward, Interest Rate Swaps, and Interest Rate Futures has been
given. A comparison of Indian Interest Rate derivative products have been done with other global
markets. Further various other interest rate derivatives products already present in other global markets
but not present in Indian markets have been elaborated. Then it has been tried to analyze which all
interest rate derivatives products can be further introduced in Indian markets. It has also been tried to
analyze the feasibility of new products as well the target audience for these products.