‘Let more foreigners into bond mart’

The Raghuram G Rajan Committee has mooted the idea of allowing more foreign participation to strengthen the bond market. “By allowing foreign investors in greater number into the corporate rupee denominated bond market, we can build liquidity in that market through investors who are willing to take risks domestic investors are not,” the panel said in its draft report. “In turn, that liquidity would attract domestic investors and create a virtuous cycle,” it said.