“Consequently, the eligible investors can acquire such securities in any manner as per the prevalent/approved market practice,” the central bank said in a notification on Thursday.
"With a view to providing flexibility in regard to the manner in which government securities can be acquired by eligible investors, it has now been decided to remove any stipulation as to the manner of acquisition from the said regulations.”
Investor appetite for Indian securities has been running high. Foreign portfolio investors have almost exhausted their limit for investing in India. Last week, Franklin Templeton invested a record about Rs 16,000 crore in government bonds.
All offshore investors, including residents outside India, qualified foreign investors, foreign portfolio investors and long-term investors like sovereign funds could buy government securities directly from the issuer of securities or Sebi registered stock brokers.
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