Rupee denominated bonds (masala bonds)

This article gives an overview about masala bonds as how it can be issued, its uniqueness, merits, demerits and its future. | Rupee denominated bonds masala bonds International Journal of Management IJM Volume 7 Issue 7 November December 2016 386 Article ID IJM_07_07_042 Available online at http ijm JType IJM amp VType 7 amp IType 7 Journal Impact Factor 2016 Calculated by GISI ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication RUPEE DENOMINATED BONDS MASALA BONDS Syamala Devi Challa Research Scholar Department of Commerce amp Business Administration Acharya Nagarjuna University Andhra Pradesh India Dr. A. Kanakadurga Assistant Professor Department of Commerce amp Business Administration Acharya Nagarjuna University Andhra Pradesh India ABSTRACT Rupee denominated bonds RDBs or Masala bonds are becoming more enticing for both investors and issuers and with these bonds India also stands at a profitable position. Normally Indian corporate issues debt instruments to raise money from the Indian investors. Unlike debt instruments masala bonds are innovative type of bonds which are linked to rupee but issued to overseas investors. Masala bond is an effort to protect issuers from currency risk and instead transfer the risk of currency to investors buying these bonds. The Reserve Bank of India RBI issued a circular authorizing the issuance of masala bonds overseas on September 29 2015. International Finance Corporation IFC a private sector investment arm of the world bank named issued and listed masala bonds on London Stock Exchange LSE in need of infrastructure projects in India. Mortgage lender Housing Development Finance Corporation HDFC was the first Indian company who raised Rs 5000 crore by issuing masala bonds. This article gives an overview about masala bonds as how it can be issued its uniqueness merits demerits and its future. Key words Rupee denominated bond External Commercial Borrowing Overseas investment Cite this Article Syamala Devi Challa and Dr. A. Kanakadurga Rupee Denominated Bonds Masala Bonds . .