Infrastructure finance companies can issue bonds to foreign investors

Non-bank finance companies categorised as infrastructure finance firms will be now allowed to issue long-term bonds to foreign institutional investors, India's stock market regulator said on Friday.

Reuters had reported exclusively on Wednesday that the Indian government was in talks with the central bank and stock market regulator to allow infrastructure finance companies to issue bonds to foreign investors.

The total cap for foreign investors to buy corporate bonds under the long-term infrastructure category was raised by $20 billion to $25 billion in February.