Chidambaram says to raise foreigners' bond holding caps - Citi

Written By Unknown on Selasa, 22 Januari 2013 | 18.00

NEW DELHI (Reuters) - India will raise by $5 billion each the caps on foreign institutional investors holding government and corporate bonds, Finance Minister P. Chidambaram said on Tuesday and forecast growth of 6.5-7 percent in the next fiscal year, Citi said in a note.

Foreign investors will be allowed to hold up to $15 billion of government bonds and $25 billion in corporate bonds, the minister was reported to have said during a meeting with investors in Hong Kong.

A one-year lock in period on holding infrastructure bonds will be eliminated, he said.

The meeting was held in the lead up to India's 2013/14 budget on February 28 where new investment and tax guidelines are likely to be announced.

(Reporting By Frank Jack Daniel)



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