In its final guidelines on bond issuance of less than one year, RBI has said no entity can issue bonds for less than 90 days and that no entity can offer a put and call option before 90 days. Only those corporates whose accounts are classified as a 'Standard' account - one where all debts are serviced in time by their bankers - can float short-term bonds. Secondly, banks can invest in short-term bonds of those corporates who have been sanctioned working capital limits by a bank.
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