Foreign investors can buy govt bonds directly in secondary market: RBI

Mumbai: The Reserve Bank of India (RBI) relaxed the manner in which foreign investors can buy government securities by giving them the flexibility to buy these papers in the secondary market without necessarily going through exchange-registered brokers.

In a circular on Thursday, the RBI said the foreign investors can buy government bonds through any “prevalent market practice”.

Effectively, this means foreign investors can buy government bonds in secondary markets directly from other market participants, such as funds, banks or primary dealers.

Reuters