Corporate Debt Restructuring Masterclass

18 July 2022 (Mon), 5pm Singapore/HK time

India’s market regulator, Securities and Exchange Board of India (SEBI), adjusts foreign investor limit on purchases of rupee-denominated corporate bonds, on Thursday last week (20 July).

According to the latest change, foreign investors would only be allowed to purchase rupee-denominated corporate debt on tap, of up to 95% ($37.87 billion). On the other side, Indian corporate issuers would also be prevented from selling until the foreign ownership in corporate debt falls below 92% of the quota.

This new restriction aims to prevent a breach of the foreign investment ceiling. Currently, foreign investors have used 92.9% of the quota. If it exceeds 95%, investors would then have to bid for the remaining capacity via an auction.

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