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Fillip for foreign role in govt debt

Mumbai, Jan. 29: The Reserve Bank of India (RBI) today doubled the investment limit for long-term foreign investors in government securities to $10 billion.

The move is seen as an attempt to attract more funds from this class of investors, that comprises sovereign wealth funds, multilateral agencies and foreign central banks, besides pension, insurance and endowment funds.

However, the total limit for foreign investments in government securities has been kept at $30 billion.

In June last year, the central bank had raised the foreign investment limit in government debt by $5 billion to $30 billion.

Analysts said besides attracting more inflows, the move was aimed at preventing any huge fall in the domestic currency.

The rupee today gained 10 paise to end at 62.41 against the dollar today on sustained selling of the US greenback by exporters ahead of a decision of the US Federal Reserve on tapering its monetary stimulus.

 
 
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