Which of the following years signifies the minimum maturity of Masala Bonds ........

General Awareness (SEBI) Indian Economy

Which of the following years signifies the minimum maturity of Masala Bonds?

This questions was previously asked in

SEBI Grade A (Ph 1 Paper 1 2021)

Five years

One year

Three years

Seven years

None of these

Let’s break it down:

- Masala Bonds are rupee-denominated bonds issued outside India by Indian entities.

- The Reserve Bank of India (RBI) sets the rules for these, including minimum maturity.

- Here’s what really matters: for Masala Bonds up to $50 million per financial year, the minimum maturity is 3 years.

- For more than $50 million in a year, the minimum goes up to 5 years.

- Option 1 (Five years): Only for bigger amounts, not the base limit.

- Option 2 (One year): That’s too short, doesn’t fit RBI rules.

- Option 3 (Three years): This is the RBI guideline for standard issues.

- Option 4 (Seven years): Not a minimum under any category.

- Option 5 (None of these): Just a distractor.

Submit Error