The Reserve Bank of India (RBI) through Circular No. 47 dated 6 June amended the framework governing the issuance of rupee denominated bonds overseas, referred to as masala bonds.
The minimum original maturity period for masala bonds shall be three years for bonds raised up to US$50 million equivalent in rupees per financial year, and five years for bonds raised above US$50 million equivalent in rupees per financial year.
The all-in-cost ceiling for masala bonds shall be 300 basis points over the prevailing yield of government of India securities of corresponding maturity.
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