RBI withdrawing key restriction on foreign investors in domestic bond market

Vastavam web: The Reserve Bank of India (RBI) said it is withdrawing a restriction that limited foreign investors to only investing in government and corporate bonds with tenures of three years or more, a move that could bolster the domestic bond market.The decision by the RBI, announced late on Friday, came close on the heels of weak investor interest in two recent auctions that led to a spike in sovereign debt yields.