Personal finance

Limit for foreign ownership of domestic bonds raised by 9 percent

Updated: 20 Apr 2022, 10:30 AM

IST

TL;DR.

The total limit now stands at 11. 73 lakh crore for 2022-23 against 10. 76 lakh crore

Under the general category of government securities, the rise in limit is close to 6 percent.

Under the general category of government securities, the rise in limit is close to 6 percent.

Threshold for foreign ownership of domestic bonds has been raised by 9 percent for the current financial year in line with the increase in outstanding debt stock, reported The Economic Times.

The total limit now stands at 11. 73 lakh crore for 2022-23 against 10. 76 lakh crore earlier.

“The aggregate limit of the notional amount of CDS (credit default swaps) sold by FPIs shall be 5% of the outstanding stock of corporate bonds. Accordingly, an additional limit of 2,22,623 crore is set out for FY2022-23,” the Reserve Bank of India said in a notification.

Under the general category of government securities, the rise in limit is close to 6 percent. The sharpest increase in limit is in the category for long-term sovereign securities, known as Voluntary Retention Route (VRR) in market parlance with overseas investors obtaining a space of around 12%.

The limit for corporate bonds has been raised by 10 percent to 6. 68 lakh crore.

First Published: 20 Apr 2022, 10:30 AM

IST

Under the general category of government securities, the rise in limit is close to 6 percent.

Source: https://mintgenie.livemint.com/news/personal-finance/limit-for-foreign-ownership-of-domestic-bonds-raised-by-9-percent-151650427494166

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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