RBI/2016-17/233
A. P. (DIR Series) Circular No.31
February 16th, 2017
To
All Authorised Dealer Category – I Banks
Madam/Sir,
Issuance of Rupee denominated bonds overseas – Multilateral and Regional
Financial Institutions as Investors
Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to
paragraph No. 4 of
A. P. (DIR Series) Circular No. 60 dated April 13th, 2016 and
paragraph No. 3.3.3 of Master Direction No.5 dated January 1, 2016 on ‘External
Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency
by Authorised Dealers and Persons other than Authorised Dealers’ as amended from
time to time about the criteria of recognized investors in the Rupee denominated
bonds issued overseas.
2. 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.
3. All other provisions of the aforesaid circular dated April 13, 2016 and
applicable provisions of A. P. (DIR Series) Circular No. 29 dated September 29th,
2015 remain unchanged. AD Category - I banks may bring the contents of this
circular to the notice of their constituents and customers.
4. The changes/revised instructions in respect of issuance of Rupee
denominated bonds will be applicable from the date of issuance of this circular.
5. Relevant paragraphs of the Master Direction No.5 dated January 1, 2016
issued by the Reserve Bank are being updated to reflect the changes.
6. The directions contained in this circular have been issued under section
10(4) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and
are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully
(Deepak Kumar)
Chief General Manager