Reserve Bank of India

13.04.2016

Banking

RBI brings changes in issuance of Rupee denominated bonds overseas

MANU/APDR/0023/2016

The Reserve Bank of India notified substantial changes in the regime for issuance of Rupee denominated bonds overseas. The limit of US$51 billion for foreign investment in corporate has been fixed at an equivalent Rs. 2443.23 billion. Bonds issued henceforth will have to comply with the Rupee threshold. Also, the overall limit for the amount of borrowing by issuance of Rupee denominated bonds overseas has been affixed at Rs. 50 billion, instead of the previous US$750 million. Rupee denominated bonds are also not allowed to be issued in countries member of the Financial Action Task Force or equivalent regional body.

Relevant

FATF’s Public Statement on AML/CFT compliance MANU/RPRL/0108/2016
Foreign investment by FIIs in Government Securities and Corporate Debt MANU/APDR/0050/2013
ECB - Issuance of Rupee denominated bonds overseas MANU/APDR/0076/2015

Tags : Rupee bond overseas fatf

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