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FBIL-Overnight MIBOR

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a) Made available to users, whether free of charge or for payment;
 
a) Made available to users, whether free of charge or for payment;
 +
 
b) Calculated periodically, entirely or partially by the application of a formula or another method of calculation to, or an assessment of the value of one or more underlying Interests;
 
b) Calculated periodically, entirely or partially by the application of a formula or another method of calculation to, or an assessment of the value of one or more underlying Interests;
 +
 
c) Used for reference for purposes that includes one or more of the following:
 
c) Used for reference for purposes that includes one or more of the following:
 +
 
• determining the interest payable, or other sums due, under loan agreements or under other financial contracts or instruments;  
 
• determining the interest payable, or other sums due, under loan agreements or under other financial contracts or instruments;  
 
• determining the price at which a financial instrument may be bought or sold or traded or redeemed, or the value of a financial instrument; and/or  
 
• determining the price at which a financial instrument may be bought or sold or traded or redeemed, or the value of a financial instrument; and/or  

Revision as of 13:11, 14 September 2015

FBIL Overnight Mumbai Interbank Outright Rate’ (commonly called as FBIL-Overnight MIBOR (Mumbai Inter-Bank Offer Rate)) is the new benchmark rate for unsecured loans of one day duration fixed by the Board of Financial Benchmarks India Pvt. Ltd (FBIL) based on the actual transactions in the inter-bank call money market. It reflects the short term funding costs to banks in India and indicates the rate at which banks in India borrow and lend money amongst themselves. The existing benchmark ie. MIBOR based on ‘polled rates’ administered by Fixed Income Money Market and Derivative Association of India (FIMMDA) and National Stock Exchange (NSE) has been replaced by this new Benchmark with effect from July 22,2015.

FBIL overnight MIBOR is a financial benchmark and is mainly used for pricing, settlement, and valuation of financial contracts. The IOSCO’s Report on Principles for Financial Benchmarks describes financial benchmarks as:

“Prices, estimates, rates, indices or values that are:

a) Made available to users, whether free of charge or for payment;

b) Calculated periodically, entirely or partially by the application of a formula or another method of calculation to, or an assessment of the value of one or more underlying Interests;

c) Used for reference for purposes that includes one or more of the following:

• determining the interest payable, or other sums due, under loan agreements or under other financial contracts or instruments; • determining the price at which a financial instrument may be bought or sold or traded or redeemed, or the value of a financial instrument; and/or • measuring the performance of a financial instrument.”








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