India paves way for credit derivatives

India's central bank has taken a small first step towards creating an onshore credit derivatives market. A set of draft guidelines released on Wednesday evening propose a framework that will allow the buying and selling of credit protection. The Reserve Bank of India could not be accused of rushing the rules through. It set up a working group to consider its approach to credit derivatives back in 2003, but nothing much happened between then and April this year, when the central b…