The Financial Benchmark India (FBIL), a private company, is in discussions with the Reserve Bank of India (RBI) and market participants to develop a new benchmark based on repo transactions, which is likely to replace the Mumbai Interbank Offered Rate (MIBOR) in a few years.
Although MIBOR is already computed using actual transactions (based on trades executed on the NDS-Call systems excluding reciprocal and reported deals within the first one hour of trading), it is based on unsecured lending in a market that is witnessing falling volumes.
As a result, the FBIL is exploring a new benchmark that will be based on repo transactions that have higher volumes and more participants than the call market on which the MIBOR is based.