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- Unbiased
The National Stock Exchange of India (NSEIL) has been trusted by the securities markets for its unbiased independence and professionalism. The function of forecasting has become more meaningful as the information comes from a source, which is not only reliable but has no vested interest of its own in the market movements.
- Market Representation
FIMMDA-NSE MIBID MIBOR is based on rates polled by NSE from a representative panel of 31 banks/ primary dealers.
- Transparent
The reference rate is released to all the market participants simultaneously through various media, making it transparent with the aspiration of the market. Ensuing transparency helps the market participants to judge the market mood and the probable rate one is likely to encounter in the market. This information is useful not only to the banks but also to the issuers and investors.
- Reliable
The high level of co-relation between actual deals and the reference rate gives an indication of its reliability. The bootstrapping technique guards against the possibility of cartelisation and of extreme observations influencing the mean.
- Scientifically Computed
The methodology of "Polling" with "Bootstrapping" is scientific and the values are generated through a system that has been extensively tested. The technique involves generating multiple data sets based on the rates polled with a dynamically determined number of iterations, identification of outliers, trimming the data set of its extreme values and computation of the mean and its standard deviation.
- Elimination of Noise
The trimming procedure is vulnerable to market manipulation of the rates due to the amount of sampling noise. Excessive trimming may lead to loss of information whereas no trimming may lead to excessive influence of the extreme values. To derive a true representative benchmark for the market NSE ensures that after trimming at least 14 data points should remain in observation for the bid and for the ask rates.
- Consistency
The Exchange ensures that everyday the FIMMDA-NSE MIBID MIBOR along with the respective standard deviations are disseminated to the market at 0955 (IST) for overnight rate and at 1215 (IST) for 14 day, 1 month and 3 month rates.
FIMMDA-NSE MIBID/MIBOR |
Methodology |
Panel of Participants
Dissemination of MIBID MIBOR |
Products linked to MIBID/MIBOR
MIBID MIBOR for the Day and Time Series
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