In-house praise Indian CDS reforms

Author: | Published: 21 Mar 2011

The Reserve Bank of India’s decision to allow Foreign Institutional Investors (FIIs) to invest in credit default swaps (CDS) related to their underlying exposure in credit securities has been welcomed.

Bankers’ counsel in India have praised the move as a good start for development of the country’s corporate bond market in spite of the restricted scope of the reforms.

“This is the first major step of liberalisation of our corporate bond market which is still not in the right shape in India,” said one Mumbai-based in-house counsel at an international...