Menu
  • Option Hydra
  • Training
  • Premium
  • Courses
  • Library

Marketcalls

Simply Intelligent Technical Analysis and Trading Strategies

  • Software
    • Amibroker
    • NinjaTrader 7
    • Ninjatrader 8
    • Option Action
    • Market Analyst
    • Metatrader
    • Python
    • Datafeed
  • Market Profile
    • Orderflow
  • Markets
  • Commodities
  • Forex
  • Economy
    • Banking
  • Webinars
  • Trading Lessons
    • Algo Trading
    • Infographic
    • Video
You are here: Home / Credit Default Swap / Now Credit Default Swap – CDS in India

Now Credit Default Swap – CDS in India

May 25, 2011 by Rajandran Leave a Comment

The Reserve Bank of India (RBI) today came out with a credit default swap (CDS) guidelines that would allow corporate entities including insurers, FIIs and mutual funds (MFs) to hedge risk against default in corporate bonds to which they subscribe.
The guidelines, which were finalised by the RBI after receiving views from stakeholders, will come into effect from October 24, it said in a notification.


CDS is a risk management product which helps entities guard against possibility of defaults in repayment of corporate bonds.

 
As per guidelines, foreign institutional investors (FIIs), banks, insurers, NBFCs, listed companies, housing finance companies, provident funds and primary dealers can buy credit protection under the scheme.

It further said that banks, primary dealers and NBFCs with sound financial and good track record will be allowed to act as market makers or facilitators (for buying and selling of such swaps).

The bonds for the purpose of CDS would include unlisted and unrated debt instruments, including those issued by the infrastructure companies engaged in sector like road, port and telecommunication, power among others.

CDS would increase investors’ interest in corporate bonds and would be beneficial to the development of the corporate bond market in India.

Elaborating on the guidelines, the RBI said that beside banks, the NBFCs and primary dealers with a net owned fund of Rs 500 crore will be permitted to act as market makers.

The guidelines further said that entities will only be allowed to buy CDS contracts to hedge credit risk and not for speculation.

Earlier in February, the RBI had formed the draft guidelines for allowing corporates to hedge risk against CDS.

The central bank had in 2008 planned to introduce the CDS for corporate bonds, but postponed the move in view of the global financial crisis, which was caused by large scale trading in such debt instruments.

To know more about Credit default Swap visit the wikipedia link – http://en.wikipedia.org/wiki/Credit_default_swap

RBI Guidelines for Credit Default Swap in India

Related Readings and Observations

  • CCI-4 StrategyCCI-4 Strategy Next to RSI-2 My eyes are always around CCI-4 Strategy.   Unfamiliar with the CCI? Read this StockCharts.com primer. In a nutshell, CCI looks at how far an asset has diverged from […]
  • Nifty and BankNifty 90 min charts update for 1st Mar 2011Nifty and BankNifty 90 min charts update for 1st Mar 2011 Nifty turns to buy mode with trailing support coming near to the 5291. Similarly Bank Nifty too turn to buy mode with trailing support coming near to 10380 zone. Reverse the trade if the […]
  • Nifty and the Scary Baltic Dry IndexNifty and the Scary Baltic Dry Index The Baltic Dry Index tracks the cost of shipping major raw materials (iron ore, coal, grain, cement, copper, sand and gravel, fertilizer and even plastic granules). Or, more simply, it […]
  • Supertrend Backtest report for August Nifty future Series from 27th July 2012 to till dateSupertrend Backtest report for August Nifty future Series from 27th July 2012 to till date Supertrend Report from 27th July 2012 to 30th Aug 2012 for 5min August Nifty futures with 2 Lots(100 Shares). And This report doesn't involves partial profit booking and the result may […]
  • Introduction to Algostudio 2.0 – Amibroker AutoTrading Bridge for Upstox API UsersIntroduction to Algostudio 2.0 – Amibroker AutoTrading Bridge for Upstox API Users Algostudio is a simple and clean user interface which is built on top of Upstox REST API with a large feature set, helping you to automate your quantitative trading who is looking to […]
  • In Depth Study on Software Vendor Empanelment at NSE IndiaIn Depth Study on Software Vendor Empanelment at NSE India SEBI allowed all exchanges to go for online trading in year 2000.After that NSE release his Circular no. NSE/CMO/0029/2000 dated December 19, 2000 regarding Empanelment of Vendors for CTCL […]

Filed Under: Credit Default Swap Tagged With: CDS in India, Credit Default Swap

About Rajandran

Rajandran is a Full time trader and founder of Marketcalls & Co-Founder of Traderscafe, trades mostly using discretionary Trading Concepts like Market Profile, Trading sentimental analysis, building timing models, algorithmic trading models. Instructs professional traders, full time traders & aspiring full time traders. Rajandran attended college in the Chennai where he earned a BE in Electronics and Communications. Rajandran has a broad understanding of trading softwares like Amibroker, Ninjatrader, Esignal, Metastock, Motivewave, Market Analyst(Optuma),Metatrader,Tradingivew,Python and understands individual needs of traders and investors utilizing a wide range of methodologies.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Email Newsletter

Sign up to receive email updates on latest trading strategies , analysis & financial market updates

We Respect Your Privacy

Premium Access

Username:
Password:
Remember Me
Lost your password?

Tools For Traders

  • Marketcalls Android App
  • MCX Signals
  • Intraday Signals
  • International Commodities
  • OI Tracker
  • Participation OI
  • Your Broker
  • Market Sentiment Analysis

Amibroker Updates

Volatile Phases – Colorful ADX Amibroker AFL Code

November 16, 2019 By Rajandran 4 Comments

Amibroker Technical Analysis Workshop – Bangalore

November 1, 2019 By Rajandran 2 Comments

How to Send Alerts from Amibroker to Telegram Channel using Telgram API

June 12, 2019 By Rajandran 15 Comments

How to Estimate the VWAP based settlement Close like a Pro using Amibroker?

June 9, 2019 By Rajandran Leave a Comment

Practical Approach to Amibroker AFL Coding

May 23, 2019 By Rajandran 37 Comments

  • Facebook
  • Google+
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Metatrader Updates

MetaTrader 5 Demo Servers Now Available for BSE Currency Markets

March 20, 2018 By Rajandran 8 Comments

ChartIQ – WebTrader for MT4

December 4, 2017 By Rajandran 5 Comments

Metatrader 4 – Web Platform Overview

October 29, 2015 By Rajandran 9 Comments

William VIX FIX Indicator for Metatrader 4

May 16, 2015 By Rajandran 9 Comments

How to Install Custom MQL4 indicators in Metatrader

November 14, 2014 By Rajandran 7 Comments


About | Contact Us | Terms and Conditions | Privacy Policy | Support Policy | Privacy Policy | Refund Policy | Disclaimer


© Copyright 2018 Marketcalls Financial Services Pvt Ltd · All Rights Reserved · And Our Sitemap · All Logos & Trademark Belongs To Their Respective Owners·

Data and information is provided for informational purposes only, and is not intended for trading purposes. Neither marketcalls.in website nor any of its promoters shall be liable for any errors or delays in the content, or for any actions taken in reliance thereon.