CURRENT AFFAIRS

Detailed explanation-1: -Interest Rate Derivative (IRD) is a financial derivative contract whose value is derived from one or more interest rates, prices of interest rate instruments, or interest rate indices.

Detailed explanation-2: -Broadly, RBI is empowered to regulate the interest rate derivatives, foreign currency derivatives and credit derivatives.

Detailed explanation-3: -Under the guidelines issued by the Reserve Bank, interest rates derivatives have been launched in India on National Stock Exchange and Bombay Stock Exchange on June, 24, 2003.

Detailed explanation-4: -Interest rate derivatives (IRD) are a derivative product that is based on a benchmark interest rate or group of interest rates. They are used by traders and borrowers to hedge their positions or speculate on movements in the market.