Mumbai : Reserve Bank eased norms for overseas investors for purchasing government bonds, giving them flexibility to acquire instruments via secondary market without the need for going through exchange-registered stock brokers. “Consequently, the eligible investors can acquire such securities in any manner as per the prevalent/approved market practice,” RBI said in a notification.
As per extant norms, Foreign Institutional Investors, Qualified Foreign Investors, Foreign Portfolio Investors and long term investors could buy government securities directly from the issuer of securities or SEBI registered stock brokers.
Late July, the RBI tweaked the investment limit for the various categories of foreign institutional investors in government bonds, carving out $5 bln from the quota earmarked from long-term FII investment in gilts to hike investment limits in the open category by the same amount. The overall investment limit in government bonds for FIIs remained unchanged at $30 bln.
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