Foreign investors will be able to buy inflation-linked bonds within the existing total investment limits of up to $25 billion for government debt, a senior Reserve Bank of India (RBI) official said on Monday.
Inflation-linked bonds will be issued separately from the scheduled auction of government bonds, which are conducted weekly. The apex bank had previously said it plans to sell inflation-indexed bonds on a monthly basis.
Inflation bonds will also be eligible for short-selling and repo transactions, the official said in a teleconference.
The Reserve Bank will set a half-yearly coupon on these bonds, the official added.
Copyright @ Thomson Reuters 2012
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