India allows QFIs to invest up to $1 billion in corporate debts
Moneylife Digital Team 29 May 2012

Residents of Financial Action Task Force member countries, Gulf Cooperation Council and European Commission will also be considered as qualified foreign investors

New Delhi: In order to attract foreign funds, the Indian government on Tuesday allowed individual overseas investors also called Qualified Foreign Investors (QFIs) to invest up to $1 billion in debts and corporate bond market, reports PTI.

The government also expanded the ambit of QFIs to include residents of FATF (Financial Action Task Force) 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.

"We are looking at 6-14 months to see the optimisation of QFI inflows," Thomas Mathew, Joint Secretary (Capital Market Division) in the ministry said.

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