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.