IDMD.PCD. 11 /14.03.04/2011-12
October 19, 2011
All market participants
Notification of Credit Default Swaps as a derivative under Reserve Bank of India Act, 1934
Reserve Bank of India having considered it necessary in public interest and to regulate the financial system of the country to its advantage, in exercise of powers conferred under Sections 45 U (a) and 45 V of the RBI Act, 1934 has issued notification specifying Credit Default Swap as a derivative for the purposes of Chapter IIID of the said Act.
2. A copy of the said notification IDMD.PCD.10 /ED (RG) - 2011 dated October 19, 2011 is enclosed.
IDMD.PCD. 10 /ED (RG) - 2011 dated October 19, 2011
In exercise of powers conferred by Sections 45U (a) and 45V of the Reserve Bank of India Act, 1934 [Act No 2 of 1934], the Reserve Bank hereby specifies Credit Default Swap as a derivative for the purposes of Chapter IIID of the said Act.