MUMBAI (Reuters) - Foreign investors will be able to buy government debt securities without having to bid for a quota, market regulator SEBI said on Friday.
Foreign institutional investors (FIIs) would have the option to buy debt securities on-tap, until 90 percent of the total available limit of $25 billion of government debt is reached.
Once the 90 percent limit is breached, government debt will be sold in an auction to investors.
Currently, to invest in Indian government bonds, FIIs are required to buy debt quotas through a monthly auction.
Earlier this year, corporate debt was taken off the auction mechanism as well, and made available "on-tap" to attract inflows.
(Reporting by Himank Sharma and Archana Narayanan; Editing by Prateek Chatterjee)
