India's lawyers have called for close-out netting provisions
in India's over-the-counter (OTC) derivatives market.
AZB & Partners associate, Sayak Maity told IFLR that
legal certainty was needed on the netting of counterparties'
exposures in insolvency cases.
Distinct bankruptcy legislation for India's private sector
and government entities had created ambiguity and increased
risk when dealing with government organisations and state-owned
banks, he said.
Independent netting legislation or amendments to bankruptcy
laws would address market uncertainties, and foster market
growth, said an Asia-based fixed income derivatives bankers'
Enforcing close-out netting is the first stage of...