Economics • Banking & FinanceMedium
Which of the following entities is authorized to issue 'Masala Bonds' in overseas capital markets?
A. Reserve Bank of India only
B. Indian corporate entities and financial institutions✓ Correct Answer
C. Foreign institutional investors operating in India
D. State governments for deficit financing
💡 Solution & Explanation
Masala bonds are rupee-denominated bonds issued by Indian corporate entities and financial institutions in international capital markets to raise funds from overseas investors. They shift currency risk away from the issuer to the foreign investor.
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