Regulatory rethink
The Reserve Bank of India sprang a big surprise in April by pushing ahead with long-stalled plans to create an onshore credit derivatives market. The market is likely to be reasonably conservative, but more interesting trades are happening offshore. Duncan Wood reports
The Reserve Bank of India (RBI) published draft rules three years ago that were supposed to lay the groundwork for an onshore credit derivatives market. Bankers welcomed the move, but the banking regulator then said no more about it. In the weeks leading up to the central bank's annual policy statement on April 24, the consensus among dealers was that credit derivatives were on ice. So it came as "a bit of a surprise" when RBI governor YV Reddy used the statement to announce that a credit
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