The draft consolidates the existing framework for credit default swaps while introducing a comprehensive regulatory structure for derivatives on credit indices and total return swaps on corporate bonds, in line with the Union Budget 2026-27. It seeks to improve credit risk management, enhance liquidity in the corporate bond market, and enable issuances across the rating spectrum. It clearly defines eligible participants, market-makers, users, reference instruments, settlement mechanisms, reporting requirements, and customer protection norms across OTC and exchange-traded markets. The comments/ feedback from stakeholders is invited.
(Link: RBI Draft Master Directions dated 06/02/2026, Press Release)