See govt calculating G-Sec limit in INR soon: BofA's Mehta

Media report suggests that the Reserve Bank of India (RBI) has proposed the Finance Ministry to set limits for investment in government securities in domestic currency instead of dollar to increase headroom for investment by FIIs.

Jayesh Mehta, Managing Director & Country Treasurer, Bank of America says the move will aid rebalancing of rupee against the dollar which will boost sentiment in the bond market. The timing is not knwon, but it will happen soon, he said adding when the limit opens, it will help broaden investors' scope. At the moment, FII investment limit in G-Secs is capped at Rs 30 billion annually. In rupee terms, the FII limit in the government securities is Rs 1.92 lakh crore.

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