9911796707
TMI BlogParticipation of mutual funds in Credit Default Swaps (CDS) Market as Users (“Protection Buyers”) and in repo, in corporate debt securitiesX X X X Extracts X X X X X X X X Extracts X X X X ..... al funds in Credit Default Swaps (CDS) Market as Users ("Protection Buyers") and in repo, in corporate debt securities A. CDS - mutual funds as users (protection buyers) 1. The Reserve Bank of India (RBI), vide notification No. IDMD.PCD.No.5053/14.03.04/2010-11 dated May 23, 2011, has issued the 'Guidelines on Credit Default Swaps for Corporate Bonds'. 2. It has been decided to permit mutual fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CDS only from a market maker approved by the RBI and enter into Master Agreement with the counterparty as stipulated under RBI Guidelines. Exposure to a single counterparty in CDS transactions shall not exceed 10% of the net assets of the scheme. d. The cumulative gross exposure through credit default swap in corporate bonds along with equity, debt and derivative positions shall not exceed 100% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SEBI from time to time, and related information as appropriate in this regard. h. Mutual funds shall also disclose the details of CDS transactions of the scheme in corporate debt securities in the monthly portfolio statements as well as in the half yearly trustee report, as per the format placed at Annexure-A. Further, mutual funds shall disclose the schemewise details of CDS transactions in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to AA and above rated corporate debt securities. 3. Therefore, in partial modification to the aforesaid circular, para 3 (c) of the circular shall now read as under: "Mutual funds shall participate in repo transactions only in AA and above rated corporate debt securities." This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f annual report of the mutual funds 1. No. of transactions during the year 2. Amount of protection bought during the year 3. No. of transactions where credit event payment was received during the year: a. Pertaining to current years transactions. b. Pertaining to previous year (s) transactions. 4. Outstanding transactions as on year end: a. No. of transactions b. Amount of protection ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
