Indian Insurers Said to Seek Easier Rules for Bond Forwards

Indian insurers are asking for lighter-touch regulations before they embrace the recently introduced bond forwards, which are aimed at enhancing the liquidity and sophistication of the nation’s $1.4 trillion government debt market.

Companies this week through their industry body wrote a letter to the regulator requesting revisions to accounting practices as well as treatment of counterparty risk, according to people who declined to be identified as the correspondence is private.

Bond forwards that debuted on Friday haven’t seen any trades yet, with some insurers awaiting approvals from their boards to trade the product, the people said. The requests come at ...