India c.bank says no to bank guarantees for bonds

MUMBAI, May 31 (Reuters) - India's central bank said it had asked banks not to provide guarantees or commitments for issues of bonds or debt instruments by companies.

Under existing rules, banks are only allowed to issue guarantees for loans taken out by corporates, it said.

"Guarantees by the banking system for a corporate bond or any debt instrument not only have significant systemic implications, but also impede the development of a genuine corporate debt market," the ...