(Bloomberg) Foreign banks can now resume profitable currency trade in India after the central bank loosened its grip on sovereign bonds.
The Reserve Bank of India ruled that foreign sovereign bonds would no longer be classified under a regulatory cap.
Under the current regulatory cap, holdings of securities that are not listed in India are supposed to have a maximum of 10% of the total non-statutory liquidity ratio.
SENSEX is up 0.28%, USDINR is up 0.19%.