RBI eases ECB norms, ups FII investment cap in corporate bonds

RBI’s few steps to curb rupee depreciation:-

  •  Ø  FII limits in Government securities hiked to $20 billion
  • Ø  RBI hikes external commercial borrowing limit by $10 billion for new projects
  • Ø  Qualified Foreign Investors (QFIs) can now invest in those mutual fund (MF) schemes that hold at least 25 per cent of their assets (either in debt or in equity or both) in infrastructure sector under the current USD 3 billion sub-limit for investment in mutual funds related to infrastructure

IMPACT: Due to this the domestic currency may strengthen against likely higher Dollar supply and may

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