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RBI has relaxed the restrictions on foreign investors. Corporate bonds can now be purchased without any limits by Foreign Institutional Investors or FIIs. this could boost India’s foreign investment in the bond market. These rules are already in effect.

previously, two types of caps existed. the initial one was the short-term investment cap that enabled investment in bonds for less than a year. Another one was concentration cap which limited the amount of money that could be funneled to a single entity. These restrictions have now been terminated.

 


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RBI foreign investors Investment Limits Capital Inflow FPI FDI Indian economy Financial markets Liberalization Ease of Doing Business Government Securities Corporate Bonds Rupee Stability Market Liquidity Economic reforms Policy Change Foreign Capital Investment Opportunities Regulatory Easing market access