Banks will be responsible for monitoring all hedge transactions and ensuring that the Indian subsidiary has the necessary underlying exposure.
Sectors that be benefit from higher expenditure from government and consumer will benefit. Capital markets will play a greater role than seen previously.
RBI just notified the measures announced for the bond market in August which included allowing banks to issue masala bonds.
Refinancing is common for private equity funds because reduced interest costs means that they have more cash for investments.
The Reserve Bank of India (RBI) has directed banks to ensure that at least 10% of their ATMs dispense `100 bank notes within the next 15 days.
The central bank recently had conducted a review of steps taken by banks for installing ATMs dispensing lower denomination banknotes.
Bankers and analysts said changes in local and global factors over the past five years have dented chances for large lenders wanting to open subsidiaries in India.
"Cost of borrowing for Indian companies borrowing from abroad is definitely going up, though there are enough funds out there for companies with decent ratings."
The lenders will have to be foreign banks as overseas branches and subsidiaries of Indian banks and overseas wholly owned subsidiary.
Axis Bank shares fell 8%, their biggest 1-day fall since Aug 24, 2015, while traders sold the stock in the Nov futures anticipating a further slide in the price.
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