RBI Allows Foreign Investors To Buy Securitised Debt

The Reserve Bank of India(RBI) has allowed foreign investors to buy securitised debt, which refers to securities such as mortgages structured by issuers, as part of efforts to attract more flows into debt markets. The securitised debt can include any securities issued by special purpose vehicles in which banks or certain financial firms are the originators.

  • For securitised debt investments, the RBI also waived a rule that requires foreign investors to invest only in debt with at least three years in remaining maturity.
  • The central also allowed foreign investors to invest in unlisted corporate bonds, though it forms only a small segment of the debt market.
  • In a separate statement, the RBI also allowed insurance companies to invest abroad, while allowing residents outside India to pay for premiums with foreign currency, among measures targeting foreign exchange activities in the insurance sector.
  • For securitised debt investments, the RBI also waived a rule that requires foreign investors to invest only in debt with at least three years in remaining maturity.
  • The central also allowed foreign investors to invest in unlisted corporate bonds, though it forms only a small segment of the debt market.
  • The RBI also allowed insurance companies to invest abroad, while allowing residents outside India to pay for premiums with foreign currency, among measures targeting foreign exchange activities in the insurance sector.

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