Interest-Rate-Options - Stock Market Circularshttps://rhnvrm.github.io/stock-market-circulars/tags/interest-rate-options/Regulatory circulars from NSE, BSE, and SEBI with AI-powered summariesHugo -- gohugo.ioen-usMon, 18 May 2026 00:00:00 +0000Corrigendum: Interest Rate Derivatives Contracts for GOI Securities (636GS2031 and 694GS2036)https://rhnvrm.github.io/stock-market-circulars/circulars/nse/2026/nse-2026-05-18-da179435e3f749e4-corrigendum-interest-rate-derivatives-contracts-of-government-of-india-goi-secur/Mon, 18 May 2026 00:00:00 +0530https://rhnvrm.github.io/stock-market-circulars/circulars/nse/2026/nse-2026-05-18-da179435e3f749e4-corrigendum-interest-rate-derivatives-contracts-of-government-of-india-goi-secur/NSE issues a corrigendum to circular NSE/CD/74251 updating Interest Rate Futures and Options contracts for two GOI securities available for trading from May 19, 2026.nsetradingmediummediummediumda179435e3f749e4https://nsearchives.nseindia.com/content/circulars/CD74278.pdf636GS2031694GS2036interest-rate-derivativescurrency-derivativesgovernment-securitiesfuturesoptionscorrigendumgoi-securitiesinterest-rate-futuresinterest-rate-optionsSummary

NSE’s Currency Derivatives Segment has issued a corrigendum (Ref: NSE/CD/74278) to the earlier circular NSE/CD/74251 dated May 15, 2026. The update revises the contract specifications for Interest Rate Futures (FUTIRC) and Options (OPTIRC) on two Government of India (GOI) securities — 636GS2031 and 694GS2036 — which will be available for trading effective May 19, 2026.

Key Points

  • Two GOI securities are being introduced for Interest Rate Futures and Options trading: 636GS2031 (6.36% coupon, maturity Feb 16, 2031, exclusion at expiry of January 2027) and 694GS2036 (6.94% coupon, maturity May 11, 2036, exclusion at expiry of April 2028).
  • Both FUTIRC and OPTIRC instrument types are available for each symbol.
  • Lot size is Rs 2 lakhs face value of GOI securities, equivalent to 2,000 units; orders must be placed in number of lots.
  • Quantity freeze threshold is set at 1,251 lots — orders up to 1,250 lots will be permitted.
  • The quarterly expiry contract of March 25, 2027 (25-Mar-27) does not apply to symbol 636GS2031.
  • All other terms from the original circular NSE/CD/74251 remain unchanged.

Regulatory Changes

This circular corrects and supersedes specific contract details published in NSE/CD/74251 (May 15, 2026). The revised contract table now specifies updated expiry schedules, lot sizes, and quantity freeze limits for the two GOI security symbols.

Compliance Requirements

  • Members must update their systems to reflect the corrected contract specifications for 636GS2031 and 694GS2036 before trading commences on May 19, 2026.
  • Orders must be placed in terms of number of lots (not face value directly).
  • Members must enforce the quantity freeze limit of 1,250 lots maximum per order.

Important Dates

  • May 15, 2026: Original circular NSE/CD/74251 issued.
  • May 18, 2026: This corrigendum (NSE/CD/74278) issued.
  • May 19, 2026: New Interest Rate Futures and Options contracts go live for trading.
  • Expiry of January 2027: Exclusion date for 636GS2031.
  • Expiry of April 2028: Exclusion date for 694GS2036.

Impact Assessment

This corrigendum has a moderate operational impact on members active in the Currency Derivatives Segment who trade interest rate products. Clearing and trading systems may need to be updated to reflect the revised contract schedule, particularly noting the exclusion of the March 2027 quarterly expiry for 636GS2031. The lot size of Rs 2 lakhs and the quantity freeze at 1,251 lots align with standard GOI securities derivative norms, limiting systemic risk. Members should verify their order management and risk systems ahead of the May 19, 2026 go-live date.

]]>Introduction of Interest Rate Derivatives Contracts on 636GS2031 and 694GS2036https://rhnvrm.github.io/stock-market-circulars/circulars/bse/2026/bse-2026-05-18-d936aa9c61120607-introduction-of-interest-rate-derivatives-contracts-on-636gs2031-and-694gs2036/Mon, 18 May 2026 11:59:52 +0000https://rhnvrm.github.io/stock-market-circulars/circulars/bse/2026/bse-2026-05-18-d936aa9c61120607-introduction-of-interest-rate-derivatives-contracts-on-636gs2031-and-694gs2036/BSE introduces Interest Rate Futures and Options contracts on two Government of India bonds — 6.36% GS2031 and 6.94% GS2036 — effective May 19, 2026.bsetradingmediummediummediumd936aa9c61120607https://www.bseindia.com/downloads/UploadDocs/Notices/20260518-21/20260518-21.pdfinterest-rate-derivativesirdinterest-rate-futuresinterest-rate-optionsgovernment-securities636gs2031694gs2036new-contractstradingSummary

BSE is launching Interest Rate Derivatives (IRD) contracts — both Futures and Options — on two Government of India bonds: the 6.36% GS maturing February 16, 2031 (636GS2031) and the 6.94% GS maturing May 11, 2036 (694GS2036). These contracts will be available for trading from May 19, 2026, extending the exchange’s existing cash-settled IRF framework introduced in June 2015.

Key Points

  • Two new underlying bonds added to the IRD segment: 636GS2031 and 694GS2036.
  • Both Interest Rate Futures (IRF) and Options contracts will be introduced on each bond.
  • Contracts are effective from May 19, 2026.
  • This builds on the existing framework for Exchange Traded Cash Settled Interest Rate Futures (notice 20150616-21 dated June 16, 2015).
  • Detailed product specifications and trading parameters are provided in separate annexures (Annexure_636GS2031 and Annexure_694GS2036).

Regulatory Changes

No changes to existing regulations. This is an expansion of the existing IRD product suite under the previously established cash-settled IRF framework. Trading members should refer to the original notice 20150616-21 (June 16, 2015) for the baseline framework.

Compliance Requirements

  • Trading members must review the product details and trading parameters in the attached annexures before trading.
  • For clarifications, trading members should contact their respective BSE Relationship Managers.

Important Dates

  • May 18, 2026: Notice issued.
  • May 19, 2026: New IRD contracts on 636GS2031 and 694GS2036 go live for trading.

Impact Assessment

This launch broadens the range of interest rate risk management instruments available on BSE. Market participants — particularly banks, mutual funds, insurance companies, and other institutional players — active in the government securities market will have additional hedging and trading tools. The introduction of both futures and options on these two bonds increases flexibility for duration management strategies. Impact is moderate, limited to participants in the IRD segment.

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