The Reserve Bank of India has released today the draft revised Master Direction – Reserve Bank of India (Credit Derivatives) Directions, 2022. Comments on the draft revised Directions are invited from market participants, stakeholders and other interested parties by February 27, 2026.

The comments / feedback may be submitted by email with the subject line “Feedback on Draft Revised Master Direction - Reserve Bank of India (Credit Derivatives) Directions, 2022”. The feedback may alternatively be forwarded to;

The Chief General Manager
Reserve Bank of India
Financial Markets Regulation Department
 9th Floor, Central Office Building, Shahid Bhagat Singh Marg, Fort
Mumbai – 400 001

Background and objectives

An active derivatives market can facilitate efficient management of credit risks, improve liquidity and efficiency in the corporate bond market and facilitate issuance of corporate bonds across the rating spectrum. Accordingly, in pursuance of the announcement made in the Union Budget for FY 2026-27 and as stated in the Statement on Developmental and Regulatory Policies dated February 06, 2026. a draft regulatory framework to enable the introduction of derivatives on credit indices and total return swaps on corporate bonds is being issued for public feedback. The draft includes consolidated provisions for all credit derivatives including existing directions for credit default swaps. The directions relating to derivatives on credit indices and total return swaps, on which feedback is being sought, are highlighted.

(Brij Raj)           
Chief General Manager

Credit derivatives: draft enables derivatives on credit indices and total return swaps; public feedback invited by Feb 27. The Reserve Bank has published a draft revised Master Direction consolidating provisions for credit derivatives, including credit default swaps, and proposing enabling provisions for derivatives on credit indices and total return swaps on corporate bonds; public comments are invited by February 27, 2026 by email or postal submission to the Chief General Manager, Financial Markets Regulation Department.