RBI introduces CDS from 1December2011

Reserve Bank of India has allowed introduction of Credit Default Swaps (CDS) for Corporate Bonds with effect from 1 December 2011. It may be recalled that the CDS guidelines were to be implemented from 24 October 2011 but got postponed for lack of necessary infrastructure. RBI now says that the needed infrastructure is ready.

Reserve Bank of India has further said that all market makers shall report their CDS trades in corporate bonds within 30 minutes of the trade to the Clearing Corporation of India Limited (CCIL) trade repository CCIL Online Reporting Engine (CORE) beginning 1 December 2011.

If you want to know about Credit Default Swaps, just click:

http://ramakrishnavadlamudi.blogspot.com/2011/10/credit-default-swaps-their-basics.html