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मैगज़्टर गोल्ड के साथ असीमित हो जाओ

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Sebi allows mutual funds to buy, sell credit default swaps

Millennium Post Delhi

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Delhi 21 September 2024

Markets regulator Sebi on Friday allowed mutual funds to both buy and sell Credit Default Swaps (CDS), a move aimed at increasing liquidity in the corporate bond market.

This flexibility to participate in CDS would serve as an additional investment product for mutual funds, Sebi said in a circular.

Earlier, mutual funds were only permitted to use CDS transactions to buy protection against the credit risk of corporate bonds they held. These transactions were limited to Fixed Maturity Plan (FMP) schemes with a duration of more than one year.

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