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.
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