A Credit Default Swap (CDS) almost works like an insurance policy for the buyer. The seller commits to compensate the buyer if there is a loan default. The CDS is a credit-derivative product for which the buyer makes periodic payments to the seller until maturity of the contract or the credit default whichever is earlier. At least one of the parties to a CDS transaction will be a market-maker or a central counterparty authorised by the RBI. The market makers for CDS will include scheduled commercial banks, NBFCs and primary dealers with a minimum net worth of Rs 500 crore, Exim Bank, NABARD, National Housing Bank and SIDBI.