Current Affairs · RBI Draft Guidelines on Total Return Swaps
Regarding the framework for Total Return Swaps (TRS) and eligible underlying assets as per the Reserve Bank of India's draft guidelines, which of the following statements is/are correct? Testbook1. Market debt instruments and rated corporate bonds are recognized as eligible underlying assets for Total Return Swaps. Testbook2. Unrated bonds or distressed assets are strictly excluded from eligible reference underlying assets. Testbook3. Individual resident retail investors are permitted to enter into Total Return Swaps freely. Testbook4. Non-resident participants are allowed to utilize Total Return Swaps, but their participation is restricted strictly to hedging purposes. Testbook Select the correct option:
- 11 and 2 only
- 21, 2, and 3 only
- 32, 3, and 4 only
- 41 and 4 only✓
Correct answer
1 and 4 only
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