InvestorQ : Can NRIs invest in India’s government securities?
Abigail Ghoshal made post

Can NRIs invest in India’s government securities?

Answer
user profile image
seema Upadhyaya answered.
1 year ago


As of now, no.

However, the central bank – the Reserve Bank of India- in its first monetary policy in FY2019-20 stated its intention to open up Indian government securities (G-Sec) market for non-residents.

This means that non-resident Indians (NRIs) would soon be able to invest in Indian g-secs.

"Pursuant to the announcement made in the Union Budget for 2014-15 on "allowing international settlement of Indian debt securities", the Reserve Bank of India, in consultation with the government, had initiated discussions with ICSDs to permit their non-resident clients to transact in government securities. It is now proposed to commence the process of implementation of international settlement of Government securities by ICSDs," says the statement of developmental and regulatory policies issued by RBI. ICSD stands for International Central Securities Depositories. It is a specialised financial service organisation that settles trades in international securities.