In this connection, it may be necessary that financially sound insurance companies and other long term investors may be permitted to sell CDS protection subject to prudential norms prescribed by the regulators. Rated Municipal Securities 29. As discussed earlier, a new asset class may be included for rated municipal securities under the IRDA & PFRDA investment guidelines.
Innovation Use of banks’ PCE facility by corporates 30. Partial credit enhancements (PCE) by banks may give a boost to the corporate bond market in its evolution phase.