The Reserve Bank of India (RBI) is planning to raise foreign institutional investment (FII) into the government securities market after the FII limit of $30 billion is fully utilised.
RBI governor Raghuram Rajan said in a post policy interaction with analysts that there is an unfulfilled demand for sovereign bonds. "We have in mind a schedule of expansion. Don't despair. We will expand, but not at the rate at which the market want us to expand. But the rate at which we are able to absorb FII investment."Asia recorded net FII inflows of $5.3 billion in November, of which India attracted $1.4 billion, says a report by HSBC. According to the HSBC, after two consecutive months of sell-offs, FIIs have warmed up to Asian equities and all markets have received positive flows in November, 2014. Among Asian economies, China regained the top position as the ‘most loved’ market, pushing India down to second position in the region, while Thailand was placed at the third spot, it said.