NSE launches futures on overnight call rate

The National Stock Exchange Monday said it has introduced futures on overnight call rate (Mibor) to provide participants an opportunity to manage risk exposures.

Mibor (Mumbai Inter-Bank Offer Rate) is the interest rate at which banks borrow from another for short term purposes.

"It is important to develop tools to help institutions manage interest rate risk. The futures on MIBOR, which is one of the key barometers of India's overnight borrowing and lending, is being introduced with the objective of providing a hedging instrument for interest rate risk," said NSE's managing director and chief executive Vikram Limaye.