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Bond Investors Get Access to $16 Billion More of Indian Debt

  • Foreigners will be allowed to own 6% of sovereign debt by 2020
  • Limit for corporate bonds set at 9%, Reserve Bank says
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Bloomberg’s Kartik Goyal reports on India’s move to grant foreign investors more access to the nation’s debt. (Source: Bloomberg)
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India’s central bank raised limits for overseas bond investors that could lure $16 billion of new funds, the third policy move in two weeks to spur demand in the nation’s debt markets.

Foreign investors will be allowed to increase holdings by 1.04 trillion rupees ($16 billion) for the fiscal year to March 2019, the Reserve Bank of India said in a statement Friday. It raised the limits for sovereign debt by half a percentage point, while changing how much investors can own of corporate bonds to 9 percent of outstanding notes from a fixed amount.