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.