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
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First Published: Fri, Sep 13 2013. 05 48 PM IST
Earlier this year, corporate debt was taken off the auction mechanism as well, and made available “on-tap” to attract inflows. Photo: Mint
Earlier this year, corporate debt was taken off the auction mechanism as well, and made available “on-tap” to attract inflows. Photo: 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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First Published: Fri, Sep 13 2013. 05 48 PM IST
More Topics: FIIs | Govt bonds | Sebi | market regulator |
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