RBI opens more long-term government bonds to foreign investors

As part of measures aimed at attracting foreign capital, the Reserve Bank of India has expanded the universe of government securities eligible under the Fully Accessible Route (FAR).

The RBI announced that 15-year, 30-year and 40-year tenor government securities (G-Secs) will now be included in the specified securities category under FAR.

Until now, the eligible universe was largely restricted to government bonds with maturities of up to 10 years.

The move will allow foreign investors greater access to India's long-dated sovereign debt market without investment limits, potentially broadening the investor base and improving demand for longer-tenor government bonds.

The central bank also announced an increase in investment limits for non-resident Indians (NRIs) in equity instruments without requiring registration with SEBI, as part of broader efforts to facilitate foreign capital inflows.

This is a developing story