Deutsche Asset seeks more open Indian sovereign bond market

FPI limit in govt bonds was raised to Rs 187,700 cr to boost inflow of foreign investments

High transaction costs and operational hurdles make the Indian sovereign bond market less attractive to global investors, according to Deutsche Asset Management Investment. 

“India is not currently included in standard-used local market emerging bonds indices because of investment restrictions. For foreign investors, given the regulations, the process of investing in them is long lasting and may create additional transaction cost,” Nicolas Schlotthauer, head of emerging markets fixed income and portfolio manager at Deutsche Asset Management Investment, told Business Standard. 

“The most important restriction is the quota for foreign investors to invest in local bond market,” added Schlotthauer. 

Recently, the government