RBI allows foreign investors to buy securitised debt | Reuters

MUMBAI The Reserve Bank of India on Thursday allowed foreign investors to buy securitised debt, which refers to securities such as mortgages structured by issuers, as part of efforts to attract more flows into debt markets.The securitised debt can include any securities issued by special purpose vehicles in which banks or certain financial firms are the originators, the RBI said.For securitised debt investments, the RBI also waived a rule that requires foreign investors to invest only in debt with at least three years in remaining maturity. The central also allowed foreign investors to invest in unlisted corporate bonds, though it forms only a small segment of the debt market. In a separate statement, the RBI also allowed insurance companies to invest abroad, while allowing residents outside India to pay for premiums with foreign currency, among measures targeting foreign exchange activities in the insurance sector.

Reuters November 17, 2016 23:00:07 IST
RBI allows foreign investors to buy securitised debt
| Reuters

RBI allows foreign investors to buy securitised debt
 Reuters

MUMBAI The Reserve Bank of India on Thursday allowed foreign investors to buy securitised debt, which refers to securities such as mortgages structured by issuers, as part of efforts to attract more flows into debt markets.The securitised debt can include any securities issued by special purpose vehicles in which banks or certain financial firms are the originators, the RBI said.For securitised debt investments, the RBI also waived a rule that requires foreign investors to invest only in debt with at least three years in remaining maturity. The central also allowed foreign investors to invest in unlisted corporate bonds, though it forms only a small segment of the debt market.

In a separate statement, the RBI also allowed insurance companies to invest abroad, while allowing residents outside India to pay for premiums with foreign currency, among measures targeting foreign exchange activities in the insurance sector.

For securitised debt statement see: bit.ly/2fYW4MgFor insurance statement see: bit.ly/2fYScer

(Reporting by Suvashree Dey Choudhury; Editing by Rafael Nam)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

also read

Apple event to kick off today at 10.30 pm IST: How to watch; iPhone 13 series, Watch Series 7, AirPods 3 expected
News & Analysis

Apple event to kick off today at 10.30 pm IST: How to watch; iPhone 13 series, Watch Series 7, AirPods 3 expected

The iPhone 13 series is said to come with hardware and software for easy connectivity with LEO satellites.

Israel floods West Bank with troops to hunt down six Palestinian escaped prisoners
World

Israel floods West Bank with troops to hunt down six Palestinian escaped prisoners

Demonstrations were held in several West Bank towns late Wednesday in support of the fugitives. In Nablus, youths set tyres alight during confrontations with Israeli security forces

Australia cuts French submarine deal for US nuclear fleet; Scott Morrison cites 'changed strategic environment' as reason
World

Australia cuts French submarine deal for US nuclear fleet; Scott Morrison cites 'changed strategic environment' as reason

Australia's submarine upgrade was a response to China’s takeover of the South China Sea, aggressive bullying of Australia and intimidation of Japan and Taiwan, said Peter Jennings.