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ARTICLE · 08 AUGUST 2016

Masala Bonds | MCA And SEBI Issue Clarifications

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Pursuant to the circular issued by the MCA on 3 August 2016, Indian companies issuing Rupee denominated bonds overseas under the RBI's policy on external commercial borrowings will not be required to comply with the public issue and private placement disclosure and listing norms.

IndiaCorporate/Commercial Law
Sudhir Bassi
Sudhir Bassi
Ashwin Bishnoi
Ashwin Bishnoi
Manisha Shroff
Manisha Shroff
Aayushi Anand
Aayushi Anand
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Pursuant to the circular issued by the Ministry of Corporate Affairs (MCA) on 3 August 2016, Indian companies issuing Rupee denominated bonds overseas (Masala Bonds) under the Reserve Bank of India's (RBI) policy on external commercial borrowings will not be required to comply with the public issue and private placement disclosure and listing norms under Chapter III of the Companies Act, 2013 (Companies Act) as well as the provisions governing the issue of secured debentures under Rule 18 of the Companies (Share Capital and Debentures) Rules, 2014 (Debenture Rules). All other provisions of the Companies Act will continue to apply to Masala Bonds. Formal notification by way of amendment to the Debenture Rules is, however, awaited.

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