Description
NSE introduces Interest Rate Futures (FUTIRC) and Options (OPTIRC) contracts on 6.48% Government of India securities maturing October 6, 2035, available for trading from October 15, 2025.
Summary
NSE will introduce Interest Rate Futures (FUTIRC) and Options (OPTIRC) contracts on Government of India 6.48% securities maturing October 6, 2035 (Symbol: 648GS2035). These contracts will be available for trading from October 15, 2025, under the Currency Derivatives Segment. The circular references SEBI master circular SEBI/HO/MRD2/PoD-2/CIR/P/2024/181 dated December 30, 2024 for underlying selection guidelines.
Key Points
- New Interest Rate Derivatives contracts for 648GS2035 (6.48% GOI securities maturing Oct 6, 2035)
- Instruments available: FUTIRC (Futures) and OPTIRC (Options)
- Exclusion date: Expiry of September 2027
- Lot size: Rs 2 lakhs face value of GOI securities equivalent to 2000 units
- Orders must be placed in terms of number of lots
- Quantity freeze: 1251 lots or greater (orders up to 1250 lots allowed)
- Monthly expiry contracts: October 30, 2025; November 27, 2025; December 24, 2025
- Quarterly expiry contracts: March 26, 2026; June 25, 2026; September 24, 2026
- Spread contracts available with different leg combinations
Regulatory Changes
This circular implements guidelines specified in:
- Exchange consolidated circular ref. no. 67722 dated April 28, 2025 (item 1.13)
- SEBI master circular No. SEBI/HO/MRD2/PoD-2/CIR/P/2024/181 dated December 30, 2024 regarding selection of underlying for trading in Cash Settled Interest Rate Futures
Compliance Requirements
- Members must download cd_contract.gz, cd_spd_contract.gz, and MII Contract & Spd files from Extranet paths /cdsftp/cdscommon
- Local database must be updated before trading on the go live date (October 15, 2025)
- Orders must comply with quantity freeze limits (maximum 1250 lots per order)
- All orders must be placed in terms of number of lots, not individual units
Important Dates
- Circular Date: October 13, 2025
- Trading Commencement: October 15, 2025
- Monthly Expiries: October 30, 2025; November 27, 2025; December 24, 2025
- Quarterly Expiries: March 26, 2026; June 25, 2026; September 24, 2026
- Exclusion Date: Expiry of September 2027
- GOI Security Maturity: October 6, 2035
Impact Assessment
This introduction expands NSE’s Interest Rate Derivatives product suite, providing market participants with additional hedging and trading opportunities in government securities. The contracts are cash-settled and based on 6.48% coupon GOI securities with long-term maturity (2035), catering to institutional investors, banks, and treasury desks managing interest rate risk. The availability of both futures and options, along with spread contracts, enables sophisticated trading strategies. Members need to ensure technical readiness by updating systems before October 15, 2025. The quantity freeze mechanism ensures orderly market functioning while allowing substantial position sizes up to 1250 lots (Rs 250 crores face value).
Impact Justification
Introduces new derivative products for institutional and sophisticated investors trading government securities. Medium impact as it expands trading opportunities in interest rate derivatives segment but affects specialized market participants.