India: Limits on FPI increased by RBI - TDS

TD Securities analysts note that the RBI increased the limits for foreign investors (FPI) investment in bonds.

Key Quotes

“In the coming FY starting April 1, the cap on foreign investment in securities issued by the federal government, state and corporate bonds will be 6% (from 5.5%), 2% (unchanged) and 9% (unchanged), respectively, of outstanding securities. The news will likely bode well for India’s bonds, and is timely as foreign bond investor flows have picked up lately after a poor start to the year.”