MUMBAI (Reuters) - The Reserve Bank of India and the Securities and Exchange Board of India said a rule announced earlier in the day preventing foreign investors from buying corporate bonds with less than three years remaining until maturity would come into effect immediately.
The central bank had announced the rule at its monetary policy review earlier in the day but had not specified when the rules would come into effect.
Most analysts had believed the rules would be applied only when the central bank is due to announce detailed operational guidelines at the end of the month.
Rules preventing foreign investors from investing in liquid and money market mutual fund schemes, also announced earlier in the day, would also be applied immediately, the regulators said.
(Reporting by Suvashree Dey Choudhury; Editing by Rafael Nam)