RBI opens up bond market
essentially overnight money. The central bank also proposed allowing listed companies to lend longer tenure money to banks through the repo market mechanism. This will have an impact on interest rates, the bond market, and liquidity in the banking system.
- Allows banks to raise money through masala bonds
- Allows entities exposed to exchange rate risk hedge up to $30 million.
- Pushes firms to access bond market for their funding needs beyond a limit.
- Allows FPIs to trade on NDS-OS and directly in corp bond market.
- Proposes to accept corporate bonds in repo