Credit Default Swap limits restrict foreign portfolio investors from selling protection once aggregate cap is reached. FPIs may buy and sell CDS as non-retail users under Credit Derivatives Directions, but selling protection is subject to an aggregate limit equal to 5% of outstanding corporate bonds monitored by CCIL; FPIs must stop selling once the limit is used and the limit is released on exit. Debt instruments received or purchased in physical settlement count toward corporate bond investment limits and, if limits are unavailable at settlement, will be adjusted in subsequent reviews. Notional amounts and deliverable debt instruments are exempt from minimum residual maturity, short-term, concentration, and single/group investor-wise limits. Directions effective May 09, 2022.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Credit Default Swap limits restrict foreign portfolio investors from selling protection once aggregate cap is reached.
FPIs may buy and sell CDS as non-retail users under Credit Derivatives Directions, but selling protection is subject to an aggregate limit equal to 5% of outstanding corporate bonds monitored by CCIL; FPIs must stop selling once the limit is used and the limit is released on exit. Debt instruments received or purchased in physical settlement count toward corporate bond investment limits and, if limits are unavailable at settlement, will be adjusted in subsequent reviews. Notional amounts and deliverable debt instruments are exempt from minimum residual maturity, short-term, concentration, and single/group investor-wise limits. Directions effective May 09, 2022.
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