Government moves to arrest rupee depreciation to have limited impact: Report
The measures include permitting manufacturing sector entities to avail ECBs up to USD 50 million with a minimum maturity of one year versus the earlier period of three years, removing caps on single group exposure for foreign investors, exemption from withholding tax for issuance of masala bond issues and removing restrictions on Indian banks' market making in masala bonds.
The government's rupee depreciation arresting measures announced Friday may not drive fund inflows and are a negative from a longer term perspective as they increase short term debt, Image source:Reuters