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India Allows QFIs To Invest Up To $1 Bln. In Debts, Corp Bonds

5/29/2012 7:35 AM ET

To attract foreign funds, the Indian Government on Tuesday allowed individual overseas investors also called Qualified Foreign Investors or QFIs to invest up to $1 billion in debts and corporate bond market, reports said..

The government also expanded the ambit of QFIs to include residents of Financial Action Task Force (FATF) member countries and those from Gulf Cooperation Council (GCC) and European Commission (EC).

"A separate sub-limit of $1 billion has been created for QFI investment in corporate bonds and mutual fund debt schemes," a Finance Ministry official said.

As of now, foreign investors were allowed to invest $20 billion in the country's corporate bond market. With this, the ceiling will increase to $21 billion.

by RTT Staff Writer

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