‘Govt to issue spl bonds sans investment caps'

In line with the Budget announcement, the government would issue special series bonds in rupees which will be completely outside capital controls to let the foreign investors buy and sell these sovereign rupee bonds freely, principal economic advisor Sanjeev Sanyal has said.

migrator

Updated:13th Feb, 2020 at 3:39 AM

New Delhi

“Normally to include a sovereign bond into global indices, the bond issuing country has to remove all foreign investment caps. But Indian government will open a new category of bonds with no caps instead of removing the 6 per cent cap for the entire market,” Sanyal said. Since the weightage in bond indices in global market is not to the country but to the markets, this means the country doesn’t have to be opened up but only the bonds have to be opened.

“The government in the Budget has announced that it would issue special series bonds in rupees. So we will be creating these sovereign rupee bonds which can be bought and sold by foreigners freely. This will make these G-secs eligible for many of the bond indices,” Sanyal said.

‘Govt to issue spl bonds sans investment caps'

In line with the Budget announcement, the government would issue special series bonds in rupees which will be completely outside capital controls to let the foreign investors buy and sell these sovereign rupee bonds freely, principal economic advisor Sanjeev Sanyal has said.

Also Read

Anthropic warns small AI models could soon replicate across smart devices: 8 things to know

29 killed, over 40 injured as school roof collapses in Pakistan's Peshawar

Ayudha Puja rush: Chennai-Coimbatore flight fares nearly triple; Mumbai tickets hit Rs 30,000

After IndiGo mid-air fire, Chennai airport tightens power bank checks as DGCA bans unsafe model

SC upholds Madras HC order: Converted Muslims can't claim BC quota benefits based on earlier status