Published by: Abhinav Publication Abhinav National Monthly Refereed Journal of Research in Commerce & Management RECENT DEVELOPMENTS IN LIBOR

LIBOR stands for London Inter-Bank Offered Rate. LIBOR is an indicative average interest rate at which a selection of banks (the panel banks) are prepared to lend one another unsecured funds on the money market. The common man in India may not be well acquainted with the term ‘libor’, but the global financial market is significantly regulated by this rate. Even the Indian market is also get effected by libor as many financial instruments are directly or indirectly driven by the libor. This paper attempts to provide a detailed understanding about libor since its origin along with its structure, methodology of composition, governance and significance. Here it is tried to give information about the recent libor scandal like how it happened and its on global & Indian market. This scandal is a wake up alarm for Indian economy as well to enforce the transparent and adequate regulatory systems to avoid such disaster in our country. This unfortunate incidence might not be noted in general, but to avoid such scandals, we should keep watching the recent developments in this subject matter and should learn the cautious techniques for its avoidance. It is important to learn from the reaction of global market on such scandal like the techniques and development to deal with the post scandal situations