New Delhi: Concerned over dismal inflow of overseas funds in corporate bonds, the government is considering relaxing the investment norms of such instruments.
The government, sources said, may reduce the minimum lock-in period to less than 2 years in unlisted bonds from three years now.
The overseas investors have so far put in only USD 0.08 billion in such bonds, as against the government target of USD 25 billion.
Finance Minister Pranab Mukherjee in Budget had hiked the FII investment limit in bonds, issued by infrastructure companies, to USD 25 billion from USD 5 billion.
The foreign institutional investors (FIIs) were permitted to invest in unlisted bonds with a minimum lock-in period of three years. However, they were allowed to trade amongst themselves during the lock-in period.
India is planning to invest about USD 1 trillion during the 12th five year plan, beginning March 2012, to fund a huge infrastructure development programme.
The government, sources said, may reduce the minimum lock-in period to less than 2 years in unlisted bonds from three years now.
The overseas investors have so far put in only USD 0.08 billion in such bonds, as against the government target of USD 25 billion.
Finance Minister Pranab Mukherjee in Budget had hiked the FII investment limit in bonds, issued by infrastructure companies, to USD 25 billion from USD 5 billion.
The foreign institutional investors (FIIs) were permitted to invest in unlisted bonds with a minimum lock-in period of three years. However, they were allowed to trade amongst themselves during the lock-in period.
India is planning to invest about USD 1 trillion during the 12th five year plan, beginning March 2012, to fund a huge infrastructure development programme.
PTI
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