IMC welcomes Centre's proposal to float rupee bonds abroad

Mumbai, June 6 (UNI) The Central Government's proposal to issue rupee-denominated bonds to global investors has received a warm welcome from Indian Merchants' Chamber (IMC).

The IMC, in a statement today, said the Government of India's proposal of borrowing has great chance of success as global fixed-income investors are interested in subscribing to Indian rupee-denominated sovereign bonds.

''Apart from helping the exchequer to raise low-cost funds, such a move will help Indian companies to raise debt at lower rates, since the sovereign rate will act as a benchmark rate for overseas borrowings,'' IMC president Niraj Bajaj said.

The proposal has been floated by the Department of Economic Affairs and is being discussed by the policy makers.

UNI