India Regulators Want Greater Foreign Access To Rupee Bonds

India should introduce a wholesale liberalization of rules restricting foreign investors from participating in domestic bond markets, according to a report produced by the country’s main financial markets regulator.

Asia’s third-largest economy currently restricts to $30 billion the amount foreign investors can hold in Indian government debt, and places further limits on the quantity of corporate debt held abroad.

But new research from a panel set up by the Securities and Exchange Board of India suggests that the country’s restrictions “fail to meet the objectives of economic policy” set by the nation’s government.

The SEBI research paper criticizes the existing restrictions as “complicated” and says that the limits have left India less open to foreign debt investment compared with other emerging market peers.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu