RBI increases bond investment limit for foreign portfolio investors

Net increase in government bonds will be Rs 592 billion in two years

The Reserve Bank of India (RBI) on Friday increased the bond investment limit for foreign portfolio investors (FPI) by a percentage point in two phases — a move that will allow foreigners about Rs 1.4 trillion of extra play in Indian bonds by the end of FY20.

“The limit for FPI investment in central government securities (G-secs) would be increased by 0.5 per cent to 5.5 per cent of outstanding stock of securities in 2018-19 and 6 per cent of outstanding stock of securities in 2019-20,” the RBI said.

Net increase in government bonds will be Rs 592 billion in