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Multilateral FIs allowed to invest in ‘masala bonds’

Multilateral FIs allowed to invest in 'masala bonds'
Mumbai, Feb 16 (IANS) The Reserve Bank of India (RBI) on Thursday permitted multilateral and regional financial institutions to invest in rupee-denominated bonds.

"In order to provide more choices of investors to Indian entities issuing rupee-denominated bonds abroad, it has been decided to also permit multilateral and regional financial institutions where India is a member country, to invest in these rupee denominated bonds," the RBI said in a notification.

The rupee-denominated bonds, which are often called "masala bonds", were proposed in the first bi-monthly monetary policy of the RBI for 2015-16. At that time, the central bank had fixed a minimum tenure of of five years, with redemption in rupees.

 

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)

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Multilateral FIs allowed to invest in 'masala bonds'

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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.