INDIA: Government may increase India foreign investment cap in government debt

Tuesday June 4 2013

It is being reported that the Indian government is likely to raise the cap on India foreign investment in sovereign debt by $5 billion soon.

India currently permits foreign institutional investors (FIIs) to purchase a total of up to $25 billion in government debt and $51 billion in corporate bonds.

Reportedly, the government is also planning to allow FIIs to invest in government bonds on “first-come-first-serve” basis, replacing the current system of auction. It is also considering a proposal to relax due diligence rules, also known as “Know Your Customer”, for foreign portfolio investors.

This information will be updated as further details become available.