India's central bank and markets regulator are discussing plans to examine the foreign investment limit in government debt. Foreign institutional investors have almost exhausted the $30bn limit imposed in Thursday on purchases of sovereign debt and policy makers are considering ways to ease investment whilst trying to shield India from volatility such as a potential increase in US interest rates. The Reserve Bank' Governor, Raghuram Rajan, said that the government is already in talks with Euroclear and Clearstream on a plan to make it easier for foreigners to trade the bonds whilst keeping transactions within India.
India's central bank and markets regulator are discussing plans to examine the foreign investment limit in government debt. Foreign institutional investors have almost exhausted the $30bn limit imposed in 2013 on purchases of sovereign debt and policy makers are considering ways to ease investment whilst trying to shield India from volatility such as a potential increase in US interest rates. The Reserve Bank' Governor, Raghuram Rajan, said that the government is already in talks with Euroclear and Clearstream on a plan to make it easier for foreigners to trade the bonds whilst keeping transactions within India.