The Reserve Bank of India has  placed on its website for comments/feedback, the draft framework on issuance of Rupee linked bonds overseas.  Comments/ feedback may be e-mailed or sent by post to the Principal Chief General Manager, Foreign Exchange Department, Reserve Bank of India, Central Office, 11th Floor, Shahid Bhagat Singh Marg, Mumbai 400 001 on or before June 15, 2015.

Background

A few international financial institutions were permitted to issue Rupee linked bonds in overseas markets, subject to certain conditions. In view of the interest shown by international investors for these bonds, the Reserve Bank on April 07, 2015 announced in its first Bi-monthly Monetary Policy Statement, 2015-16 its intention to expand the scope of issuance of these bonds by the international financial institutions as also to permit Indian corporates, eligible to raise external commercial borrowings (ECB), issue such bonds with an appropriate regulatory framework. Accordingly, the Reserve Bank has released the draft framework for issuance on issuance of Rupee linked Bonds overseas.

Alpana Killawala

Principal Chief General Manager

Rupee linked bonds overseas: draft framework expands issuance to IFIs and eligible corporates; comments invited. The Reserve Bank of India has published a draft framework to permit issuance of Rupee linked bonds in overseas markets, expanding issuance from a limited set of international financial institutions to include Indian corporates eligible to raise external commercial borrowings, and has invited stakeholder comments with submission instructions to the Foreign Exchange Department.