A central bank panel has issued recommendations for introducing bond options in India that include simple structured contracts and allowing companies to trade up to 50 million rupees ($736,024.73) without documented underlying exposures.

The working group, set up by the Reserve Bank of India, has called for introducing a call and put option format for trading over-the-counter (OTC) as well as on exchanges, the panel said in its report.

"To begin with, simple call and put options, caps, floors, collars and swaptions may be permitted. Complex structures may be introduced subsequently," it said.

All domestic entities with an underlying interest rate risk may be allowed to trade these "interest rate options," the report said.

The RBI called for comments on its report by Feb. 26 and will issue final guidelines by end-March.

India's central bank currently allows trading of bond futures, and had long been expected to introduce options in India.