Credit Default Swaps Guidelines to be issued today; move to develop credit derivatives market: RBI Governor

RBI Monetary Policy Feb 2022: To facilitate the development of a credit derivatives market and deepen the corporate bond market in India, the Reserve Bank of India (RBI) will issue Credit Default Swaps (CDS) guidelines today. The announcement was made by Governor Shaktikanta Das during his Monetary Policy speech.

The guidelines for Credit Default Swaps (CDS) were initially issued in 2013 and later reviewed and draft guidelines were issued in February 2021 for public comments. 

"Taking into account the feedback received, the final CDS Directions are being issued today. These guidelines will facilitate the development of a credit derivatives market and deepen the corporate bond market in India," RBI Governor said.

RBI had announced in the Statement on Developmental and Regulatory Policies of December 4, 2020, about reviewing these guidelines. On February 16, 2021, preliminary guidelines were released for public comment.

"And keeping in view the inputs received, the final guidelines are being issued today," Das said.