MUMBAI May 15 The Reserve Bank of India will
sell 10-20 billion rupees of inflation-indexed bonds on June 4,
kickstarting monthly sales of a new type of debt the country is
introducing this year.
The principal will be indexed to the wholesale price index
with a four-months lag, while the coupon will remain fixed, the
central bank said.
India plans to kick off the sale in June with
inflation-linked debt of 10-year maturities, and will sell 10-20
billion rupees each month for a total of 120-150 billion rupees
by the fiscal year ending in March 2014.
The RBI will aim to eventually sell these bonds to retail
investors around October, after gathering experience about the
coupon rates from the initial sales.
(Reporting by Suvashree Dey Choudhury, Swati Bhat and Neha