RBI allows foreign investors to buy corporate bonds totally or partly in default
Q. RBI has permitted foreign investors to buy which type of bonds that are totally or partly in default?- Published on 27 Nov 15a. Corporate bonds
b. Life insurance bonds
c. Personal bonds
d. None of the above
ANSWER: Corporate bonds
RBI has permitted foreign players to purchase corporate bonds which are totally or partly in default is a move to boost the nascent distressed debt market. This will lead to an exit for existing investors and promote less stress in the banking sector. Companies currently face USD 640 billion in debt which is greater than 40% of India’s GDP.
