Key changes suggested by the central bank include clarifications on the scope of Counterparty Credit Risk (CCR) concerning both banking and trading book exposures. Enhanced treatment of multiple margin agreements and netting sets has been outlined, taking into account recent legal and regulatory developments related to netting and margining guidelines. Additionally, there is guidance on transactions where a bank serves as a clearing member of Sebi-recognized stock exchanges in the equity derivatives and commodity derivatives segments.
Moreover, the RBI has introduced proposals for the treatment of deferred option premiums, guidance on calculating effective notional amounts for options, and the incorporation of disclosure templates for the Standardised Approach for Counterparty Credit Risk (SA-CCR), as stated in the notification.
In 2016, the RBI released final “Guidelines for Computing Exposure for Counterparty Credit Risk Arising from Derivative Transactions” and “Guidelines on Capital Requirements for Bank Exposures to Central Counterparties,” both based on the Standardised Approach for Counterparty Credit Risk (SA-CCR), with an intended launch date of April 1, 2018. However, the implementation of these guidelines was later postponed, according to the RBI.
The central bank has requested feedback from regulated entities, market participants, and other interested parties by July 1, 2026.
