Government may raise FII limit in bonds

The government is considering a proposal to raise the ceiling on foreign institutional investments in government and corporate bonds by $5 billion each, a senior finance ministry official told Reuters on Monday.

The official did not specify whether that would involve raising the overall debt limits for foreign investors, or whether it would entail reshuffling limits between the different debt categories.

The consensus for this was reached between the Finance Ministry and the Reserve Bank of India in their last Financial Stability and Development Council.

Copyright: Thomson Reuters 2012