Consider the following statements about Masala bonds
Which of the above statements is/are correct
Consider the following statements about Masala bonds
Which of the above statements is/are correct
The correct option is A 1 and 3 only
The term is used to refer to rupee-denominated borrowings by Indian entities in overseas markets.
IFC’s Masala bond programme, has raised the equivalent of $1.7 billion from international investors for investment in India.
Masala bonds, if they take off, can be quite a significant plus for the Indian economy. They are issued to foreign investors and settled in US dollars. Hence the currency risk lies with the investor and not the issuer, unlike external commercial borrowings (ECBs), where Indian companies raise money in foreign currency loans.
Now, IFC has launched its Uridashi Masala bonds, mobilising R30 crore directly from Japanese household investors to promote private sector development in India
1 and 3 only
The term is used to refer to rupee-denominated borrowings by Indian entities in overseas markets.
IFC’s Masala bond programme, has raised the equivalent of $1.7 billion from international investors for investment in India.
Masala bonds, if they take off, can be quite a significant plus for the Indian economy. They are issued to foreign investors and settled in US dollars. Hence the currency risk lies with the investor and not the issuer, unlike external commercial borrowings (ECBs), where Indian companies raise money in foreign currency loans.
Now, IFC has launched its Uridashi Masala bonds, mobilising R30 crore directly from Japanese household investors to promote private sector development in India
