<h1>India's New Bill on Netting of Financial Contracts Aims to Boost Market Stability and Reduce Systemic Risk.</h1> The Bilateral Netting of Qualified Financial Contracts Bill, 2020, was introduced in the Lok Sabha to provide a legal framework for netting of qualified financial contracts. The bill aims to reduce credit risk and promote financial stability by allowing financial institutions to offset claims against each other, thereby minimizing systemic risk. This legislation is expected to enhance the efficiency of financial markets and align with global best practices, benefiting the financial sector by providing clarity and legal certainty in transactions involving derivatives and other financial contracts.