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Masala Bonds to Require RBI Approval
June 15, 2017
Tightening the norms for firms looking to raising capital through masala bonds, or rupee-denominated bonds, in foreign markets the Reserve Bank of India has now made it mandatory for them to get its approval for issuance.
As per a RBI notification, all new proposals for masala bonds in overseas markets will now require the central bank’s stamp of approval and will be assessed by its foreign exchange department. Moreover, masala bonds worth $50 million per fiscal must have a minimum maturity period of 3 years in comparison to the current 5 years.
