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Business News/ Market / Stock-market-news/  India relaxes quota rules for buying Govt debt for foreigners
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India relaxes quota rules for buying Govt debt for foreigners

Currently, to invest in Indian govt bonds, FIIs are required to buy debt quotas through a monthly auction

Earlier this year, corporate debt was taken off the auction mechanism as well, and made available “on-tap” to attract inflows. Photo: Mint (Mint)Premium
Earlier this year, corporate debt was taken off the auction mechanism as well, and made available “on-tap” to attract inflows. Photo: Mint
(Mint)

Mumbai: Foreign investors will be able to buy Indian government debt securities without having to bid for a quota, India’s market regulator said on Friday.

Foreign institutional investors (FIIs) would have the option to buy debt securities on-tap, until 90% of the total available limit of $25 billion of government debt is reached.

Once the 90% limit is breached, government debt will be sold in an auction to investors.

Currently, to invest in Indian government bonds, FIIs are required to buy debt quotas through a monthly auction.

Earlier this year, corporate debt was taken off the auction mechanism as well, and made available “on-tap" to attract inflows.

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Published: 13 Sep 2013, 05:48 PM IST
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