CDS for Corporate Bonds: Operational Date Pushed to Nov 2011
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/228 · issued 20 Oct 2011 · ~1 min read
Quick answerRBI has postponed the operationalisation of Credit Default Swap (CDS) guidelines for corporate bonds from October 24, 2011 to end-November 2011, citing infrastructure readiness and market clarifications.
What changed
The effective date for CDS guidelines, originally set for October 24, 2011, has been moved to end-November 2011. The exact date will be notified later. The delay is due to pending infrastructure like trade repository, documentation, and CDS curve publication, plus market queries on operational aspects.
What it means for you
Banks and lenders get additional time to prepare for CDS trading, including understanding documentation and valuation norms. The delay signals RBI's focus on robust institutional framework before launch. Market participants should use this period to finalise internal systems and clarify operational doubts.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review the May 2011 CDS guidelines and assess readiness for November 2011 launch.
Engage with trade repository and documentation teams to ensure compliance by new deadline.
Prepare internal training on CDS valuation and contract standardisation.
Submit any pending clarifications to RBI promptly to avoid last-minute issues.
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Why was the CDS operationalisation date changed?
RBI cited the need to complete infrastructure like trade repository, documentation, and CDS curve publication, plus market participants requested clarifications on operational aspects.
What is the new effective date for CDS guidelines?
The guidelines will be operationalised by end-November 2011. The exact date will be notified separately.
Who is impacted by this change?
All scheduled commercial banks (excluding RRBs), standalone primary dealers, and non-banking financial companies that were to start CDS trading.
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/228
IDMD.PCD.No. 12/14.03.04/2011-12
October 20, 2011
The Chairmen & Chief Executive Officers of all
Scheduled Commercial Banks (excluding RRBs),
Standalone Primary Dealers and Non Banking Financial Companies
Dear Sir/Madam,
Introduction of Credit Default Swaps (CDS) for Corporate Bonds: Change in effective date for operationalisation
A reference is invited to para 4 of the RBI circular of IDMD.PCD.No. 5053 /14.03.04/ 2010-11 dated May 23, 2011 wherein it was indicated that the guidelines on CDS would be effective from October 24, 2011. Necessary infrastructure which includes trade repository, documentation, publication of CDS curve for valuation, standardisation of contracts, etc. required for the launch of the product is being put in place. Further, market participants have asked for certain clarifications regarding documentation, operational aspects, and the arrangement for the necessary institutional framework.
2. In view of the above, the matter has been reviewed and it has been decided to operationalise CDS guidelines issued in May 2011 by the end of November 2011. The exact date will be notified shortly.
Yours faithfully,
(Sanjay Hansda)
Director & Officer-in-Charge
Related Press Releases/Notification
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/228 · issued 20 Oct 2011. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6769&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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