The opening of the country’s
corporate debt market has attracted investor interest. But
attitudes are different when it comes to offshore and onshore
|How has India’s
corporate bond market reform affected banks and
corporates’ appetite for onshore and
offshore debt issuances?
India introduced a sweeping corporate bond market reform
in August 2016, authorising domestic banks to tap both the
onshore bond, and the offshore dollar and rupee-debt markets
for the first time. It also gave foreign portfolio investors
direct access to the onshore corporate bond trading platform.
The lifting of the ban by the Reserve Bank of India (RBI) is
intended to help onshore lenders raise additional capital to
meet Basel III ratio requirements. But the concurrent opening
of the market to foreign investors may also serve as an
incentive for Indian banks to issue onshore.
With this in mind, IFLR asked its readers about the