IMF: allow more foreign investments in debt

IMF: allow more foreign investments in debt
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First Published: Fri, Feb 12 2010. 10 04 PM IST
Updated: Fri, Feb 12 2010. 10 04 PM IST
Mumbai: India should allow more foreign investments in its debt market to boost trading and lower borrowing costs, the International Monetary Fund (IMF) said on Friday.
Increasing foreign participation would provide additional liquidity and more robust pricing of local bond-market issues, John Lipsky, the IMF’s first deputy managing director, said at a conference in Mumbai.
India currently caps foreign investments in government debt at $5 billion (Rs23,250 crore) and in corporate bonds at $15 billion. India should have one foreign investment ceiling for both government and company debt, Lipsky said.
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First Published: Fri, Feb 12 2010. 10 04 PM IST