....The fraud has two major lessons for countries like India that are nascent players in the world of advanced financial instruments. On November 10, 1998, the Mumbai inter-bank offer rate (Mibor) was set up on the lines of Libor as a benchmark rate for all interest rate swaps, forward rate agreements, floating rate debentures and term deposits. The Reserve Bank of India (RBI) may have to monitor Mibor more closely now with adequate checks and balances to ensure that banks and financial institutions do not report suppressed rates to paint a rosy picture of their financial standing. Though unlike in the western world, most key rates in India are determined or benchmarked by RBI, scrutinising Mibor by the banking regulator would go a long way to prevent a Barclays kind of scandal in the Indian market.......
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