The Securities and Exchange Board of India (Sebi) is mulling a fresh framework to allow mutual fund (MF) participation in credit default swaps (CDS), a move part of a series of actions planned by the regulator to develop the corporate bond market in the country.
The market regulator has formed a working group to identify lacunae in the framework introduced over a decade ago, which had failed to take off. The terms of reference of the committee include suggesting big-scale changes aimed at facilitating risk mitigation and investments in lower-rated corporate bonds, said people in the know.
In November 2012,