India preps margin regime as parliament debates netting law
Lawmakers thrash out bill on close-out netting; margin rules likely to follow in H1
India is preparing to introduce legislation intended to allow state-owned banks to apply close-out netting for derivatives, a change that also clears the way for the country’s central bank to publish its long-awaited margining regime for non-cleared derivatives.
While margining rules have been rolled out globally in recent years, India has yet to issue directions due to an absence of close-out netting – the ability to offset gains and losses following a default.
In non-netting jurisdictions
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