India regulator proposes easing norms for foreign investors buying only government bonds

(Reuters) – India’s markets regulator has proposed to reduce regulatory requirements for foreign investors investing exclusively in the country’s government bonds, it said on Tuesday, as it looks to boost investments in these securities.

Foreign investors who hold Indian government bonds need not disclose investor group details, the Securities and Exchange Board of India proposed in a consultation paper.

“Simplification of onboarding process and rationalization of ongoing regulatory compliances is expected to further help in facilitating investments by foreign portfolio investors (FPIs) in Indian government bonds (IGBs),” SEBI said.

FPIs are currently required to share details on their investor groups.

SEBI also proposed allowing resident as well as non-resident Indians and overseas citizens to contribute to the corpus of foreign investors who exclusively buy Indian government bonds.