Highlights of the Report
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Non-resident investors bring volume and liquidity to the financial markets as there is a large corpus of savings available overseas, forever in search of yields.
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There has been a gradual effort to remove the barriers to entry for non-resident investors in the debt segment.
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The gradual process is motivated by the possibility of sudden reversals causing turbulence in the interest rates.
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RBI would also work towards enhancing the overall liquidity in government securities market in terms of availability of two-way quotes in less liquid maturities through targeted market making schemes.
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Further, measures towards activation of a securities lending and borrowing programme, inter-operability of depositories for smooth transfer of ownership in securities will receive attention.
Source
Indian Express.
Source
The Hindu