MUMBAI (Reuters) - The Reserve Bank of India (RBI) said on Thursday said it had postponed putting into operational the credit default swaps (CDS) guidelines for corporate bonds that were issued on May 24.
A new date will be announced shortly, the RBI said in a statement.
Earlier, the RBI had said the guidelines on CDS would be effective from Oct. 24.
Necessary infrastructure required for the launch of the product is being put into place, the RBI said.
"Market participants have asked for certain clarifications regarding documentation, operational aspects and the arrangement for the necessary institutional framework. Hence it has been decided to postpone the date," RBI said.
A CDS is a swap contract in which the buyer of protection against a bond or loan makes regular premium payments to a counterparty who assumes the risk in the event of a default.
(Reporting by Shamik Paul; Editing by David Holmes)
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