There is some relief news for foreign investors in India. Actually, India has taken a big step towards making the government bond market more attractive for foreign investors. The country's market regulator, Securities and Exchange Board of India, i.e., SEBI, has decided to ease the rules for foreign investors investing in government bonds. SEBI has announced that from February 2026, those foreign investors who invest only in Government Bonds will be exempted from many rules. These new rules will come into effect from February 8, 2026.

The market regulator made this announcement in its board meeting in June 2025. Under the rules, now such investors will not need to give their investor group details. The reason for this is that government bonds are considered to be a low-risk investment.

At present, foreign investors must give group details.

Till now, foreign investors in India are required to give their identity and group details while investing in shares and bonds so that the investment does not exceed the prescribed limit. But now those investing in government bonds will be exempted from this rule.

The interest of foreign investors in government bonds is increasing rapidly
This move has come at a time when Indian government bonds have become a center of attraction at the global level. Recently, India's bonds have been included in the JP Morgan Global Emerging Market Bond Index and FTSE Russell Emerging Markets Government Bond Index. Due to this, the interest of foreign investors has increased rapidly.

The flow of foreign funds will be stronger.
Experts believe that these changes will strengthen the flow of foreign funds in India, and the government bond market will become more active. This will benefit the economy.

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