On the backburner
India has an active interest rate and currency derivatives market, but efforts to introduce credit derivatives have hit a wall. Despite significant moves towards deregulation last year, the central bank has put its plans on hold. By William Rhode
The Reserve Bank of India (RBI) has slammed the brakes on credit derivatives deregulation in the country, following a wave of derivatives scandals in the Indian subcontinent. It hasn't helped that credit derivatives have earned themselves a bad name as a result of the global subprime crisis. "Credit derivatives are not under our active consideration at this stage," an RBI spokesperson in Mumbai tells Asia Risk.
The central bank had announced in May 2007 that the use of over-the-counter (OTC)
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