India raises FII cap in corporate, govt bonds by $5 bn each

India has raised the ceiling on foreign institutional investment in government and corporate bonds by $5 billion each, a finance ministry official said on Thursday.

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Foreign institutional investment (FII) limit in corporate debt now stands at a combined $45 billion, of which $25 billion must be invested in infrastructure bonds.

The increase will see FII ceiling for government bonds rise to $15 billion.

The capital markets regulator, Securities and Exchange Board of India (SEBI), is expected to notify the decisions in the next few days, the official added.

Reuters