**Executive Summary**
The Reserve Bank of India (RBI) has released the draft revised Master Direction – Reserve Bank of India (Credit Derivatives) Directions, 2022, for public feedback. The document aims to introduce derivatives on credit indices and total return swaps on corporate bonds. Market participants, stakeholders, and other interested parties are invited to submit comments by February 27, 2026.
**Key Points / Main Content**
* **Purpose:**
* The document aims to facilitate efficient management of credit risks, improve liquidity and efficiency in the corporate bond market, and facilitate the issuance of corporate bonds across the rating spectrum.
* It introduces derivatives on credit indices and total return swaps on corporate bonds.
* **Draft Regulatory Framework:**
* A draft regulatory framework is being issued for public feedback, in pursuance of the Union Budget for FY 2026-27.
* The draft includes consolidated provisions for all credit derivatives, including existing directions for credit default swaps.
* **Feedback and Submission:**
* The RBI invites comments and feedback on the draft revised Directions.
* Feedback can be submitted via email, with the subject line "Feedback on Draft Revised Master Direction – Reserve Bank of India (Credit Derivatives) Directions, 2022”.
* Alternatively, feedback can be forwarded to The Chief General Manager, Reserve Bank of India, Financial Markets Regulation Department, 9th Floor, Central Office Building, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001.
* **Deadline:**
* The deadline for submitting comments is February 27, 2026.
**Impact Analysis**
**Market Participants, Stakeholders, and Other Interested Parties**
* **Impact:** Are directly affected by the proposed directions relating to derivatives on credit indices and total return swaps.
* **Action Required:** Review the draft revised Master Direction and provide comments/feedback to the RBI by February 27, 2026.
Key Entities Referenced
Reserve Bank of India: Central bank of India and issuer of the Master Direction.
draft revised Master Direction – Reserve Bank of India (Credit Derivatives) Directions, 2022: Revised master direction on credit derivatives issued by RBI.
Mumbai: Location of the Reserve Bank of India's Central Office, which is relevant for correspondence related to the Master Direction.
Statement on Developmental and Regulatory Policies dated February 06, 2026: Referenced policy document
प्रेस प्रकाशनी PRESS RELEASE
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, केंद्रीय कायार्लय, शहीद भगत िसंह मागर्, फोटर्, मुंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 06, 2026
RBI releases draft revised Master Direction – Reserve Bank of India (Credit
Derivatives) Directions, 2022
The Reserve Bank of India has released today the draft revised Master Direction –
Reserve Bank of India (Credit Derivatives) Directions, 2022. Comments on the draft
revised Directions are invited from market participants, stakeholders and other
interested parties by February 27, 2026.
The comments / feedback may be submitted by email with the subject line
“Feedback on Draft Revised Master Direction - Reserve Bank of India (Credit
Derivatives) Directions, 2022”. The feedback may alternatively be forwarded to;
The Chief General Manager
Reserve Bank of India
Financial Markets Regulation Department
9th Floor, Central Office Building, Shahid Bhagat Singh Marg, Fort
Mumbai – 400 001
Background and objectives
An active derivatives market can facilitate efficient management of credit risks,
improve liquidity and efficiency in the corporate bond market and facilitate issuance of
corporate bonds across the rating spectrum. Accordingly, in pursuance of the
announcement made in the Union Budget for FY 2026-27 and as stated in the
Statement on Developmental and Regulatory Policies dated February 06, 2026. A draft
regulatory framework to enable the introduction of derivatives on credit indices and
total return swaps on corporate bonds is being issued for public feedback. The draft
includes consolidated provisions for all credit derivatives including existing directions
for credit default swaps. The directions relating to derivatives on credit indices and total
return swaps, on which feedback is being sought, are highlighted.
(Brij Raj)
Press Release: 2025-2026/2062 Chief General Manager