{"id":973,"date":"2026-03-17T10:25:10","date_gmt":"2026-03-17T10:25:10","guid":{"rendered":"https:\/\/materials.simplycurrentaffairs.com\/?p=973"},"modified":"2026-03-18T10:25:15","modified_gmt":"2026-03-18T10:25:15","slug":"masala-bonds","status":"publish","type":"post","link":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/2026\/03\/17\/masala-bonds\/","title":{"rendered":"Masala Bonds"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0);color:#199668\" class=\"has-inline-color\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>Masala Bonds<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong><strong><strong><strong><strong><strong><strong>About<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Masala Bonds are\u00a0<strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-luminous-vivid-orange-color\">rupee-denominated bonds<\/mark><\/strong>\u00a0i.e.\u00a0the funds would be raised from the\u00a0<strong>overseas market in Indian rupees.\u00a0<\/strong>\u00a0<\/li>\n\n\n\n<li>They were introduced in\u00a0<strong>2014.<\/strong>\u00a0<\/li>\n\n\n\n<li><strong>Eligible Issuers: Companies registered in India<\/strong>\u00a0\u2014 including public sector undertakings, banks, and infrastructure investment trusts \u2014 are\u00a0permitted\u00a0to issue Masala Bonds.\u00a0<\/li>\n\n\n\n<li>To reach a broader pool of investors, these bonds are\u00a0<strong>typically listed on major international platforms<\/strong>\u00a0such as the London Stock Exchange or Singapore Exchange.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong><strong><strong><strong><strong><strong><strong><strong>Advantages of Masala Bonds<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>They were introduced by the Reserve Bank of India to\u00a0<strong>encourage foreign investment\u00a0<\/strong>and\u00a0<strong>reduce India\u2019s reliance on external commercial borrowings in foreign currencies.<\/strong>\u00a0\u00a0<\/li>\n\n\n\n<li>These bonds are\u00a0<strong>directly pegged to the Indian currency.\u00a0<\/strong>So,<strong>\u00a0investors will directly take the currency risk or exchange rate risks.\u00a0<\/strong>\u00a0\n<ul class=\"wp-block-list\">\n<li>For instance: If the value of Indian currency falls, the foreign investor will have to bear the losses, not the issuer which is an Indian entity or a corporate.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Masala Bonds About Advantages of Masala Bonds<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-973","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/comments?post=973"}],"version-history":[{"count":1,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/973\/revisions"}],"predecessor-version":[{"id":974,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/973\/revisions\/974"}],"wp:attachment":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/media?parent=973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/categories?post=973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/tags?post=973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}