MUMBAI: India's central bank said on Wednesday it would lower the minimum maturity period for rupee debt issued abroad by Indian companies to three years from five years, in line with foreign investment in corporate bonds.
The Reserve Bank of India also said Indian companies would be allowed to raise up to Rs.2.4 trillion ($36.03 billion) worth offshore rupee debt as part of the overall corporate bond limit, while each company will be able to issue up to Rs.50 billion in debt through the automatic route.
Previously, the limits had been set in dollar terms within the overall aggregate limit of $51 billion and an individual limit of $750 million, but the rupee amount would change depending on the prevailing exchange rate.
The RBI had announced changes to corporate debt investments at its policy review in September.
India bank cuts minimum maturity period for offshore rupee debt
