27-02-2021 | 15:32 PM
Credit Default Swap
The Reserve Bank of India has revealed the credit default swaps (CDS). It has allowed the retail users to do the transactions in permitted credit derivatives in order to hedge their underlying credit risk.
As per the guidelines, the non-retail users will be allowed to do the transactions in credit derivatives for the purpose of hedging as well as other purposes.
The person who is resident in India and a non-resident can participate in the market.
Credit Default Swap (CDS) is a derivative or contract that permits the investor to swap or offset his credit risk with another investor.
