RBI changes Date for Operationalisation of CDS Guidelines for Corporate Bonds

The Reserve Bank of India has decided to postpone operationalisation of the Credit Default Swaps (CDS) guidelines for corporate bonds (www.rbi.org.in/scripts/NotificationUser.aspx?Id=6769&Mode=0) . The new date will be announced shortly.

It may be recalled that the Reserve Bank had indicated in its Press Release No. 2010-2011/1707 dated May 24, 2011 (www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=24450) that the guidelines on CDS would be effective from October 24, 2011. In this regard, necessary infrastructure which includes trade repository, documentation, publication of CDS curve for valuation, standardisation of contracts, etc., required for the launch of the product is being put in place. Further, market participants have asked for certain clarifications regarding documentation, operational aspects and the arrangement for necessary institutional framework. Hence it has been decided to postpone the date of operationalisation of the CDS guidelines issued in May 2011.

R. R. Sinha
Deputy General Manager

Press Release: 2011-2012/626