Overseas demand rises for Indian bonds

Foreign institutional investors have recently become a driving force in India’s secondary market for corporate bonds, accounting for almost half of overall volumes in the first four months of 2010, says UK bank RBS. They have also hit their ceiling for investments in government securities (GSecs). However, the Indian authorities are considering raising the aggregate thresholds, which stand at $5 billion for GSecs and $15 billion for corporate bonds, added RBS in a report on the countr…