India's central bank has taken a small first step towards creating an onshore credit derivatives market. A set of draft guidelines released on Wednesday evening propose a framework that will allow the buying and selling of credit protection.
The Reserve Bank of India could not be accused of rushing the rules through. It set up a working group to consider its approach to credit derivatives back in 2003, but nothing much happened between then and April this year, when the central bank finally announced that it was finally ready to issue some guidelines.
The end product is largely in line with what the market had...
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