**Policy Summary:**
The Reserve Bank of India (RBI) has announced the withdrawal of two circulars related to Credit Default Swaps (CDS) for Corporate Bonds, effective immediately. This action is based on the interim recommendations of the Regulations Review Authority (RRA) 2.0, which was established on April 15, 2021. The specific circulars being withdrawn are:
* Introduction of Credit Default Swaps for Corporate Bonds: Date for Operationalisation Changed (IDMD.PCD. No.1214.03.04201112 dated October 20, 2011).
* Guidelines on Credit Default Swaps CDS for Corporate Bonds Permitting All India Financial Institutions (IDMD.PCD.4085 14.03.04201112 dated April 23, 2012).
For further information, contact Dimple Bhandia, Chief General Manager, Financial Markets Regulation Department, Central Office Building, 9th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001. Phone: 9122 2260 1000. Fax: 9122 22702290. Email: cgmfmrdrbi.org.in. The original announcement can be found at www.rbi.org.in, reference number RBI202122129 dated November 16, 2021.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the financial system.
Regulations Review Authority RRA 2.0: An authority set up to review and streamline regulations, established by the Reserve Bank of India.
Credit Default Swaps: A financial derivative contract that allows an investor to swap or offset their credit risk with that of another investor.
Corporate Bonds: Debt securities issued by corporations to raise capital.
All India Financial Institutions: Financial institutions operating across India.
Financial Markets Regulation Department: A department within the Reserve Bank of India responsible for regulating financial markets.
Mumbai, Maharashtra: City in India where the Central Office Building of RBI is located.
Dimple Bhandia: Chief General Manager at Financial Markets Regulation Department, Reserve Bank of India.
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2021-22/129 November 16, 2021
FMRD.DIRD.09/14.03.059/2021-22
To,
All Eligible Market Participants
Madam/Sir,
Regulations Review Authority (RRA 2.0) – Interim Recommendations –
Withdrawal of Circulars
Reference is invited to the announcement on setting up of a new Regulations Review
Authority (RRA 2.0), vide press release dated April 15, 2021 and the publication of the
interim recommendations of the RRA 2.0, vide press release dated November 16,
2021.
2. As part of the implementation of the interim recommendations of the RRA 2.0, it has
been decided to withdraw the following circulars with immediate effect.
a) Introduction of Credit Default Swaps for Corporate Bonds: Date for
Operationalisation Changed (IDMD.PCD. No.12/14.03.04/2011-12) dated October
20, 2011.
b) Guidelines on Credit Default Swaps (CDS) for Corporate Bonds- Permitting All
India Financial Institutions (IDMD.PCD.4085/ 14.03.04/2011-12) dated April 23,
2012.
Yours faithfully,
(Dimple Bhandia)
Chief General Manager
�वत्तीय बाज़ार �व�नयमन �वभाग,क�द्र�य कायार्लय भवन, नौवीं मंिजल, शह�द भगत �सहं माग,र् फोटर्, मुंबई–400001.भारत
फोन: (91-22) 2260 1000,फैक्स: (91-22) 22702290 ई-मेल: cgmfmrd@rbi.org.in
Financial Markets Regulation Department, Central Office Building, 9th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001. India
Tel: (91-22) 2260 1000, Fax: (91-22) 22702290 e-mail- cgmfmrd@rbi.org.in
�हन्द� आसान है, इसका प्रयोग बढ़ाइए