RBI: Discouraging external debt issuance? - BBH

The Reserve Bank of India is reportedly reviewing its process for allowing local companies to issue debt overseas, notes the analysis team at BBH.  

Key Quotes

“The bank is apparently concerned that future FX movements may hurt these companies’ ability to repay their external debt obligations.  The RBI is also looking more closely at the hedging practices of borrowers.  Observers said that the new process has resulted in slower approvals for external debt issuance in recent weeks.  Recall that Korean officials are also discouraging external debt issuance by its companies.”