NSE Introduces Interest Rate Futures and Options on GOI Securities 636GS2031 and 694GS2036

Description

NSE will launch Interest Rate Futures and Options contracts on two Government of India securities (636GS2031 and 694GS2036) effective May 19, 2026, with lot sizes of Rs 2 lakhs face value and quantity freeze at 1251 lots.

Summary

NSE’s Currency Derivatives Segment is introducing Interest Rate Futures (FUTIRC) and Interest Rate Options (OPTIRC) contracts on two Government of India (GOI) securities — 636GS2031 and 694GS2036 — effective May 19, 2026. The launch is pursuant to SEBI’s master circular SEBI/HO/MRD2/PoD-2/CIR/P/2024/181 dated December 30, 2024 and Exchange consolidated circular ref. no. 67722 dated April 28, 2025.

Key Points

• Two new underlying GOI securities added: 636GS2031 (6.36% coupon, maturity Feb 16, 2031) and 694GS2036 (6.94% coupon, maturity May 11, 2036)
• Both FUTIRC and OPTIRC instrument types will be available for each symbol
• Exclusion date for 636GS2031: Expiry of January 2027; for 694GS2036: Expiry of April 2028
• Lot size is Rs 2 lakhs face value of GOI securities, equivalent to 2000 units; orders must be placed in number of lots
• Quantity freeze applies at 1251 lots or greater (orders up to 1250 lots are permitted)
• Members must download updated contract files (cd_contract.gz, cd_spd_contract.gz, MII Contract & Spd files) from Extranet paths /cdsftp/cdscommon before trading commences

Regulatory Changes

This circular expands the list of eligible underlyings for Cash Settled Interest Rate Futures per SEBI’s master circular No. SEBI/HO/MRD2/PoD-2/CIR/P/2024/181 (December 30, 2024). No changes to existing contract specifications or regulatory framework are introduced; this is an additive product launch under existing guidelines.

Compliance Requirements

• Members must download and install updated contract database files (cd_contract.gz, cd_spd_contract.gz, MII Contract & Spd files) from Extranet path /cdsftp/cdscommon before May 19, 2026
• Local databases must be updated prior to the go-live date to enable order entry for the new symbols
• Orders must comply with the 1250-lot quantity freeze limit per order

Important Dates

• May 15, 2026 — Circular issued
• May 19, 2026 — New contracts (636GS2031 and 694GS2036) go live for trading
• Expiry of January 2027 — Exclusion date for 636GS2031
• Expiry of April 2028 — Exclusion date for 694GS2036

Contract Expiry Schedule

Impact Assessment

This launch deepens liquidity options in the Interest Rate Derivatives segment by adding medium-to-long duration GOI securities as underlyings. The 636GS2031 bond (maturing 2031) and 694GS2036 bond (maturing 2036) provide instruments for hedging interest rate risk across the 5-year and 10-year segments of the yield curve. Impact is primarily on institutional members and proprietary desks active in fixed-income derivatives. Retail participation is limited given the Rs 2 lakh lot size. Members need to update trading systems before May 19, 2026 to avoid operational disruptions on go-live day.

Impact Justification

Operational expansion of the Interest Rate Derivatives segment with two new GOI security underlyings; affects members active in currency/IRD segment but is a routine product launch rather than a market-wide regulatory change.