Bond derivatives may initially be institutional play

WITH THE SECURITIES & Exchange Board of India having discussions with the Reserve Bank of India (RBI) to launch derivative contracts in the bond market, experts believe that interest from retail investors in these instruments will only come if they are structured right and there is more education.

- ANANYA GROVER

They said these will help deepen the market, but initially, it will only be an institutional play. Mrugank M Paranjape, chairperson of the IMC task force on capital markets and managing partner at MCQube, said more products are needed to deepen the market, and all derivatives and exchange traded contracts need a gestation period of 5-10 years to garner traction.