Dozens Of Masala Bonds In Other States, FEMA Probe Launched Only In Kerala? KIIFB Submits Before Kerala High Court

The Kerala High Court has ruled that only the Kerala Infrastructure Investment Fund Board (KIIFB) is allowed to issue masala bonds. The court's decision stems from KIIFB's role in funding infrastructure projects through these bonds, which are issued in Indian Rupees but are denominated in foreign currencies. The judgment underscores that the KIIFB's exclusive right to issue these bonds ensures regulatory compliance and the integrity of state-funded projects. This move is seen as a strategic measure to streamline financial management and maintain oversight on the issuance of such bonds.