The Reserve Bank of India has approved external commercial borrowing proposals aggregating $1.7 billion during the first quarter ended June 30, 2003, RBI executive director Usha Thorat said on Saturday.
The corporates are taking benefit of cheaper credit outside India and currency exchange value, and proposals of $1.7 billion have been cleared in Q1 of current fiscal," Thorat said, addressing the India Debt Investors Conference organised by Fitch Ratings and Citigroup in Mumbai.
Referring to the decision for capping the interest rate on non-resident external (rupee) account, she said this has been done in view of the surge in inflows through this route and it is expected to slowdown the inflows.
On liquidity, she said RBI has enough instruments in its armoury to manage liquidity.
Transparency is vital in the corporate bond market and dissemination of information has far more benefits than keeping it restricted to few market players, she added.
Referring to the Government Securities Act, which would enable commencement of Separate Trading for Registered Interest and Principal of Securities, she said the amendment to this Act is likely to be introduced only in next session of Parliament.
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