MUMBAI (Reuters) - The Reserve Bank of India (RBI) on Monday relaxed rules to make it easier for domestic companies to borrow money and invest it overseas.
Under the new rules, companies can use a charge on their assets as security for the loans, the RBI said in a statement late on Monday, (http://bit.ly/170kZup) which previously required prior approval from the central bank. Companies can also use shares in overseas joint ventures as security.
The funds raised through either method will have to be used for the company's core business activities overseas and not for investing back in India, the RBI statement said.
(Reporting by Aman Shah in Mumbai; Editing by Larry King)
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