(Bloomberg) -- Guidelines proposed by India for
trading credit-default swaps exclude a ``significant'' part of
the domestic debt market and may limit growth in bank lending,
according to the International Swaps and Derivatives Association.
The draft rules require a published rating on securities
tied to the swaps, the Reserve Bank of India said on May 16. The
contracts were conceived to protect debt holders by paying the
buyer face value in exchange for the underlying securities
should the borrower default.
Read more at Bloomberg Bonds News
trading credit-default swaps exclude a ``significant'' part of
the domestic debt market and may limit growth in bank lending,
according to the International Swaps and Derivatives Association.
The draft rules require a published rating on securities
tied to the swaps, the Reserve Bank of India said on May 16. The
contracts were conceived to protect debt holders by paying the
buyer face value in exchange for the underlying securities
should the borrower default.
Read more at Bloomberg Bonds News
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