Mumbai: With a view to increase liquidity in the secondary market, RBI on Friday appointed a working group on government securities and interest rate derivatives markets.
The committee, under the chairmanship of RBI executive director R Gandhi, will analyse the G-Sec and interest rate derivatives markets and promote retail participation in them.
“The RBI has set up a working group comprising representatives from market and RBI officials to examine and suggest ways for enhancing secondary market liquidity in G-Sec and interest rate derivatives markets,” the apex bank said in a notification.
Seeking comments from stakeholders by 17 January, 2012, it said that the working group will study the determining and influencing factors on liquidity of G-Sec and interest rate derivatives and the factors responsible for enabling and inhibiting liquidity in the secondary market.
In its second quarter policy review in October, the RBI had said it will form a working group to study ways for increasing secondary market liquidity.
The government had last month increased the investment limit for foreign institutional investors in government securities to $15 billion with a view to enhance capital flows.