RBI Provides Insights on FPI Opportunities in Debt Markets

Thursday, 8 August 2024, 14:45

The Reserve Bank of India (RBI) has indicated that foreign portfolio investors (FPIs) have significant opportunities in the Indian debt market following the exclusion of certain bonds from the Fully Accessible Route (FAR) category. Notably, the FAR category was introduced in 2020 and has attracted attention from global financial institutions like JP Morgan and Bloomberg. This shift highlights the ongoing evolution in the Indian sovereign debt landscape, thereby enhancing its appeal for international investors.
Economictimes
RBI Provides Insights on FPI Opportunities in Debt Markets

Opportunities for FPIs in Indian Debt Market

The Reserve Bank of India (RBI) recently emphasized the expanding opportunities for foreign portfolio investors (FPIs) within the Indian debt landscape, especially after the exclusion of some bonds from the Fully Accessible Route (FAR) category.

The Importance of FAR Bonds

  • The FAR category, introduced in 2020, allows only certain government bonds to be included in global bond indices.
  • Major institutions like JP Morgan and Bloomberg have recognized the significance of this category in shaping investment strategies.

As the Indian debt market continues to adapt, it remains a promising arena for international investors seeking diversification in their portfolios.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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