India frees up Foreign Investor Portfolio limits on corporate bonds
NEW DELHI - The Reserve Bank of India (RBI) announced today that masala bonds will no longer be part of Foreign Portfolio Investor (FPI) limits on corporate bonds, freeing up INR440.01bn (approx. USD6.8bn) which will be released for FPI investment in corporate bonds over the next two quarters.
ANZ Bank in a Client Note says that because corporate debt limits have been almost fully utilised, the move is welcome.
“But further opening up of FPI limits, particularly for Central Government Securities, is needed to ensure continued inflows,” it says. www.live.anz.com (ATI).