Photo: ReutersMumbai: The Reserve Bank of India raised limits for overseas investors that could lure $16 billion of additional funds into the nation’s sovereign as well as corporate debt. Foreign investors will be allowed to increase holdings of sovereign, state and corporate bonds by Rs1.04 trillion ($16 billion) in the fiscal year to March 2019. The central bank set 9% as the limit for foreign investors to own in debt sold by Indian companies. The yield on sovereign bonds due January 2028 dipped to 7.18% on Friday from 7.40% the prior week. It will discontinue existing sub-categories in corporate bonds and there will now be a single limit for such debt.

Source: Mint April 09, 2018 03:00 UTC