Indian issuers still finding Masala bonds bland as caps remain

Mumbai

TWO months after suspending Masala bond sales by local issuers, India on Friday lifted restrictions on issuance. That was the easy part.

Masala bonds, or rupee-denominated debt securities sold abroad, are still subject to caps on pricing and tenure. Issuers must also compulsorily seek approval from the Reserve Bank of India before every sale, constraints that may keep issuance from picking up pace.

"Waiting for a go-ahead from the RBI each time can be challenging as companies hit the market at an opportune time," Umesh Revankar, managing director of Shriram Transport Finance Co, a financier of commercial vehicles, …