Mumbai: India’s central bank has eased norms lately to encourage more foreign ownership of local debt. This means a foreign institutional investor must make adjustments frequently as and when it sells or buys different series of other bonds. “An investor may need to do a lot of permutations and combinations to be compliant with these guidelines. This will stop bilateral deals, a common practice between a corporate bond issuer and an overseas investor.No FPI shall have an exposure of more than 20% of its corporate bond portfolio in a single corporate. They cannot also invest in related party bonds with the same cap.

Source: Economic Times May 06, 2018 23:48 UTC