BackForeign investors can buy govt securities from the market: RBI
Foreigners can buy govt securities and corporate bonds from the market, without taking the help of brokers
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Mumbai: The Reserve Bank of India (RBI) on Thursday said foreigners can directly buy government securities and corporate bonds from the market, without taking the help of brokers.
“With a view to providing flexibility in regard to the manner in which government securities can be acquired by eligible investors, it has now been decided to remove any stipulation as to the manner of acquisition … the eligible investors can acquire such securities in any manner as per the prevalent/approved market practice," the central bank said in a notification on its website.
While this will not impact the market as such, it creates a “level playing field" for foreign investors, said N.S. Venkatesh, chairman of the Fixed Income Money Markets and Derivatives Association, and head of treasury, IDBI Bank.
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