MUMBAI The government will raise the limit on foreign investments in government and corporate bonds by $5 billion each, said a finance ministry official who declined to be named, in a move intended to attract more funds into the country.
India currently caps the total amount that foreign institutional investors can buy in domestic debt at $65 billion, which is distributed through categories of government, corporate and infrastructure bonds, some of which include tenor or lock-in restrictions.
The increase in limits will be effective in the next seven to ten days, the official said on Friday.
(Reporting by Arup Roychoudhury; Editing by Tony Munroe)
Trending On Reuters
India is considering setting up an independent panel to help state-owned banks negotiate settlements with big businesses on bad loans, in order to shield bankers from a populist backlash they say is hobbling efforts to clean up their balance sheets. Full Article