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HomeStartup NewsRBI will now permit foreign investors to purchase sovereign green bonds in IFSC

RBI will now permit foreign investors to purchase sovereign green bonds in IFSC

SEBI is allowed to invest in SGrBs through the various channels that FPIs might use to purchase government securities. Currently, foreign portfolio investors. This action is intended to enable broader non-resident involvement in SGrBs; consequently, a plan for foreign investors who meet the requirements is being developed for SGrB trading and investing.

RBI will now permit foreign investors to purchase sovereign green bonds in IFSC is allowed to invest in SGrBs through the various channels that FPIs might use to purchase government securities. Currently, foreign portfolio investors. This action is intended to enable broader non-resident involvement in SGrBs; consequently, a plan for foreign investors who meet the requirements is being developed for SGrB trading and investing.

This occurs just a few days after the Indian government declared it would issue SGrBs to cover the country’s most recent budgetary needs by borrowing INR 12,000 crore.

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According to the Reserve Bank of India (RBI), trading and investment in sovereign green bonds (SGrBs) will be permitted at the Gandhinagar International Financial Services Centre (IFSC).

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The government released SGrBs in January of last year in response to a statement included in the Union Budget for FY 2022–2023. The central bank then stated in a statement that SGrBs were also issued as a part of the government borrowing schedule in FY 2023–2024.

“With a view to facilitating wider non-resident participation in SGrBs, it has been decided to permit eligible foreign investors in the IFSC to also invest in such bonds,” said RBI governor Shaktikanta Das, while announcing the first bi-monthly policy for FY’25.

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The government has been promoting efforts to increase foreign investment in India via various avenues. Das went on to say that as of March 29, 2024, India’s foreign exchange reserve had hit an all-time high of $645.6 billion. The Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund, was also rumored to be preparing to establish a $4.5 billion fund to invest in GIFT City earlier this year.

About RBI

RBI regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth.

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