DBOD. No. BP. 502 / 21.04.157/2007-08

October 24, 2007

The Chairman/Chief Executive Officer
All Commercial Banks (excluding RRBs and LABs) and
Primary Dealers

Dear Sir,

Please refer to our letter forwarding DBOD.No.BP.1409/21.04.157/2006-07 dated May 16, 2007 the first draft guidelines on Credit Default Swaps and inviting feedback from various stakeholders. The feedback received from wide spectrum of banks and other stakeholders has been examined and the draft guidelines, which have been suitably revised are furnished as an Annex to this letter. The revised draft guidelines are also placed on the website for wider access and feedback.

2. It has been decided to keep open the revised draft guidelines for a second round of consultation a period of 15 days from the date of this letter. Comments / feedback, if any, may please be forwarded to the undersigned at the following address:

The Chief General Manager-in-Charge
Department of Banking Operations and Development
Reserve Bank of India
12^th Floor, Central Office Building
Shahid Bhagat Singh Marg, Fort
Mumbai – 400 001
Fax L +91 – 22- 2270 5691

3. Since, the comments / suggestions received on the first draft issued in May, 2007 have already been considered, you may not repeat the same during this round of consultation.

Yours faithfully,

(Prashant Saran)
Chief General Manager-in-Charge