RBI to allow Rs.1,200 bn additional foreign investments in government bonds
The Dollar Business Bureau The Reserve Bank of India has decided to increase the investment limits in government securities for foreign portfolio investors (FPI) up to 5% of the outstanding stock by March 2018. “In aggregate terms, this is expected to open up room for additional investment of Rs.1,200 billion in the limit for central government securities by March 2018 over and above the existing limit of Rs.1,535 billion for all government securities (G-sec),” the RBI said in its bi-monthly monetary policy statement on Tuesday. The move is aimed at having a more predictable regime for investment by the foreign portfolio investors (FPI). Besides, the limits for FPIs in debt securities issued by state governments, also known as State Development Loans (SDLs), ...
