New Delhi, June 26 -- The Reserve Bank of India (RBI) has issued the final directions for expanding the country's credit derivatives market, paving the way for wider use of instruments such as Credit Default Swaps (CDS) and total return swaps, as per a statement by the apex bank on Thursday.

This comes after the Union government proposed measures to deepen India's credit derivatives market and strengthen risk management tools for market participants in the Union Budget 2026. The rules are applicable with immediate effect. "These Directions shall come into force on June 25, 2026," said RBI.

As per the release, these rules will enable the resident Indian non-retail users to deploy instruments such as credit default swaps and total return ...