New Delhi, Feb. 7 -- The Reserve Bank of India (RBI) on Friday released the draft revised 'Master Direction - Reserve Bank of India (Credit Derivatives) Directions, 2022', inviting comments from market participants, stakeholders and other interested parties by February 27, 2026.

The draft guidelines introduce a framework for derivatives trading in corporate bond indices and total return swaps (TRS), a move announced earlier by Finance Minister Nirmala Sitharaman in the Union Budget to deepen and broaden the corporate bond market.

Expanding Credit Risk Management Tools

The RBI said an active credit derivatives market could help improve credit risk management, enhance liquidity and efficiency in the corporate bond market, and support bon...