The two monetary systems are of equal importance to China in its reform and liberalisation. One does not precede or be subsidiary to the other. They will operate in a mutually independent manner. The second principle relates to the relationship between the two monetary authorities.
The guidelines on introduction of plain vanilla OTC single-name CDS for corporate bonds in India would be effective from October 24, 2011. The Mutual Funds would be eligible to buy credit protection (buy CDS contracts) to hedge their underlying credit risk on corporate bonds.