Regulatory rethink

India Risk - Credit derivatives

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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 de

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