Consider the following statements regarding Masala Bonds 1 They refer to rupee denominated borrowing...........

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Consider the following statements regarding 'Masala Bonds'

1) They refer to rupee-denominated borrowings by Indian entities in overseas markets.

2) They are issued to foreign investors and denominated in Indian Rupees.

3) They are part of foreign portfolio investor investments in corporate bonds.

Which of the above statement (s) is/are correct?

1 Only

1 and 2

2 and 3

1, 2 and 3

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Explanation:

All the statements are correct. It is recently said that with effect from 3rd October, 2017, Masala Bonds will no longer form part of the limit for FPI investments in corporate bonds. They will form part of the ECBs.
Masala Bonds are presently reckoned both under combined corporate debt limit (CCDL) for FPI and external commercial borrowings (ECBs).