India`s RBI announces host of measures to attract dollar inflows
India has undertaken a series of measures to attract more dollar inflows into the country, at a time when rising crude oil prices and record outflows from Indian equities have pushed the rupee to record lows.
Here are the details:
• All new issuances of 15-year, 30-year and 40-year government bonds will be a part of Fully Accessible Route
• Bonds under this category are part of three global indexes
• The limits pertaining to short-term investment, concentration and individual securities on foreign investment under the general route are being removed.
• These measures along with the tax benefits provided by the government this morning should help attract foreign capital for government borrowing, RBI Governor Sanjay Malhotra said
• Limits for investments by Non-Resident Indians and Overseas Citizens of India in equity instruments traded on the stock market without SEBI registration are being increased
• This facility is being extended to all individual Persons Resident Outside India at par with NRIs and OCIs
• RBI will provide a facility of concessional forex swap for about four months till September 30 for external commercial borrowings by state-run companies
• RBI will allow a similar facility by bearing the full hedging cost till September 30 for banks that can raise three to five year FCNR(B) deposits
• RBI will restore time for realisation for export proceeds to nine months
