DBOD.No.BP. 1409 / 21.04.157 /2006-07
/ Chief Executive Officer,
All Commercial Banks (excluding RRBs and LABs) and
Policy Statement 2007- 08:
Draft Guidelines on Credit Default Swaps
refer to paragraph 175 of the Annual
Policy Statement 2007 – 08 wherein it was indicated that as a part of the
gradual process of financial sector liberalization in India it is considered appropriate
to introduce credit derivatives in a calibrated manner at this juncture. Accordingly,
to begin with, it has been decided to permit Commercial Banks and Primary Dealers
to begin transacting in single-entity credit default swaps.
In view of the complexities involved it has been decided to initially issue the
proposed guidelines for implementation as a first draft for comments and feedback
from various stake holders. The draft guidelines putting in place a regulatory
framework for transacting of credit default swaps is given in the Annex.
Your comments / feedback should be sent to the undersigned at the following address
and by email
within one month from the date of this letter.
of Banking Operations and Development
Reserve Bank of India
floor, Central Office Building
Shahid Bhagat Singh Marg
Mumbai – 400 001