RBI expands FAR universe for FPIs to boost capital inflows
Mumbai, June 5 -- The Reserve Bank of India (RBI) has thrown open a wider section of the government bond market to foreign investors, easing investment restrictions and expanding the pool of securities available under the fully accessible route (FAR) - a framework that allows foreign investors to buy designated government bonds - in a bid to revive overseas debt inflows, which experts said may support the government's borrowing programme.
The sweeping changes, announced on Friday, come at a time when foreign investment in Indian debt has slowed sharply amid a narrowing interest-rate differential with the US and heightened global uncertainty. Net foreign debt inflows slowed to just $0.5 million in the April-June quarter, compared with inf...
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