The RBI has released the Master Directions for Credit Derivatives, introducing new compliance guidelines. Key elements focus on credit index derivatives and total return swaps to promote market stability.
Master Direction - RBI Credit Derivatives Directions, 2026
On June 25, 2026, the Reserve Bank of India published the Master Directions for Credit Derivatives, as part of its commitment to enhancing the regulatory framework of financial instruments in India. These directions, effective immediately, coordinate with earlier policy statements and outline the introduction of credit derivatives on credit indices and total return swaps.
According to Paragraph 13 of the Statement on Developmental and Regulatory Policies, issued with the Bi-monthly Monetary Policy Statement for 2025-26, these directions aim to establish a more robust framework for participants in the credit derivatives market. They emphasize transparency, responsibility, and compliance among market players.
Financial institutions and market participants involved in credit derivatives must familiarize themselves with these new directions to ensure compliance and leverage the opportunities presented by this evolving financial landscape.
Citations
- RBI/FMRD/2026-27/407