A.P. (DIR Series) Circular No. 06
All Category - I Authorised Dealer Banks
Madam / Sir,
of Rupee Denominated Bonds (RDBs) Overseas
Attention of Authorized Dealer
Category - I (AD Category - I) banks is invited to the provisions contained
in paragraphs 2 and 8 of A.P. (DIR Series) Circular No.60 dated April
13, 2016 on issuance of Rupee denominated bonds overseas and paragraphs
3.2 and 3.3.9 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.
2. It has been decided, in
consultation with the Government of India, to exclude issuances of RDBs
from the limit for investments by FPIs in corporate bonds with effect from
October 3, 2017 vide A. P. (DIR Series) Circular No. 05 dated
September 22, 2017.
3. Consequently, reporting
requirement in terms of paragraph 8 (additional email reporting of RDB
transactions for onward reporting to depositories) of A.P. (DIR
Series) Circular No. 60 dated April 13, 2016 has been dispensed with.
However, it should be noted that the reporting of RDBs will continue as per
the extant ECB norms.
4. All other aspects of the ECB
policy remain unchanged. AD Category - I banks may bring the contents of
this circular to the notice of their constituents and customers.
5. The aforesaid Master
Direction No. 5 dated January 01, 2016 will be updated to reflect the
6. The directions contained in
this circular have been issued under section 10(4) and 11(1) 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-in- Charge