New Delhi, June 27 -- The Reserve Bank of India (RBI) on Thursday issued the Master Direction - Reserve Bank of India (Credit Derivatives) Directions, 2026, expanding the country's credit derivatives market beyond single-name credit default swaps (CDS) to include total return swaps (TRS) on corporate bonds, exchange-traded CDS on credit indices and futures on credit indices.

The directions take immediate effect, replacing the previous framework issued in February 2022.

The move operationalises proposals announced in the Union Budget for FY2026-27 and the RBI's February 2026 monetary policy statement, and follows a public consultation process initiated earlier this year.

Total Return Swaps Introduced

The framework permits eligible mark...