The Securities and Exchange Board of India (SEBI) on September 20, 2024, issued the notification regarding the Flexibility in participation of Mutual Funds in Credit Default Swaps (CDS).
The following has been stated namely: -
• Reference is drawn to the Master Circular or Mutual Funds dated June 27, 2024
• Clause 12.28 has been amended to state “Participation of Mutual Funds in Credit Default Swaps (CDS)” the following has been stated namely: -
o Mutual Fund Schemes as a buyer of CDS
o Mutual Fund Schemes as a seller of CDS
This shall come into force on September 20, 2024.
[Notification No. SEBI/HO/IMD/PoD2/P/CIR/2024/125]
