A. P. (DIR Series) Circular No.31
All Authorised Dealer Category –
of Rupee denominated bonds overseas – Multilateral and Regional
Financial Institutions as Investors
Attention of Authorised Dealer
Category-I (AD Category-I) banks is invited to paragraph No. 4 of A. P. (DIR Series) Circular No. 60
dated April 13, 2016 and paragraph No. 3.3.3 of Master Direction No.5 dated
January 1, 2016 on ‘External Commercial Borrowings, Trade
Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and
Persons other than Authorised Dealers’ as amended from time to time about
the criteria of recognized investors in the Rupee denominated bonds issued
2. In order to provide more
choices of investors to Indian entities issuing Rupee denominated bonds
abroad, it has been decided to also permit Multilateral and Regional
Financial Institutions where India is a member country, to invest in these
Rupee denominated bonds.
3. All other provisions of the
aforesaid circular dated April 13, 2016 and applicable provisions of A. P.
(DIR Series) Circular No. 29 dated September 29, 2015 remain unchanged. AD
Category - I banks may bring the contents of this circular to the notice of
their constituents and customers.
4. The changes/revised
instructions in respect of issuance of Rupee denominated bonds will be
applicable from the date of issuance of this circular.
5. Relevant paragraphs of the Master Direction No.5 dated
January 1, 2016 issued by the Reserve Bank are being updated to
reflect the changes.
6. The directions contained in
this circular have been issued under section 10(4) and 11(2) of the Foreign
Exchange Management Act, 1999 (42 of 1999) and are without prejudice to
permissions / approvals, if any, required under any other law.
Chief General Manager