MUMBAI INTER-BANK OFFER RATE: (MIBOR)
The Committee for the Development of the Debt Market had studied and recommended
the modalities for the development of a benchmark rate for the ‘Call Money Market'(Pure
Interbank market for domestic funds for short term maturities) in India.

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Accordingly, the National Stock Exchange of India Limited (NSEIL) had developed and
launched the NSE Mumbai Inter-bank Bid Rate -(MIBID) and NSE Mumbai Inter-bank
Offer Rate (MIBOR) for the overnight money market on June 15, 1998. The Fixed Income
Money Market and Derivatives Association of India (FIMMDA) and NSEIL now provide cobranded
reference rates renamed as ‘FIMMDA-NSE MIBID/MIBOR’. Rates are provided
for 1 day (overnight), 3 days (only on Fridays), 14 days, 1 month and 3 months maturities.
These rates represent the interest rates at which banks can borrow funds, in market lots,
from other banks in the Indian inter-bank market. The rates are calculated everyday as a
weighted average of lending rates obtained from a group of contributing banks, on funds
lent in the inter-bank market. These rates are used as bench mark rates for Interest Rate
Swaps, Forward Rate Agreements, Floating Rate Debt instruments, Term Deposits and
calculation of Swap points for foreign exchange forward market. Almost all deals in the
Call Money Market are referenced against these rates.

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