
302 INTERNATIONAL FINANCIAL MANAGEMENT
• Reference obligations shall be listed and unlisted but rated corporate bonds. However,
CDS can also be written on unrated bonds issued by the SPVs set up by infrastructure
companies as reference obligation.
• Securities with original maturity up to one year (e.g. Commercial Papers) and non-
convertible debentures shall also be permitted as reference obligations.
• Users cannot buy CDS for amounts higher than the face value of corporate bonds
held by them and for periods longer than the tenor of corporate bonds held
by them.
• Users cannot exit their bought positions by entering into an offsetting ...