India likely to raise foreign investment limit in government debt soon-sources

MUMBAI/NEW DELHI, June 9 Mon Jun 9, 2014 4:18am EDT

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MUMBAI/NEW DELHI, June 9 (Reuters) - India is likely to raise the foreign investment limit in government debt soon, as almost all of the current allocation has been taken up, said four officials with direct knowledge of the government's thinking.

The current limit is 995.46 billion rupees ($16.9 billion).

One of the sources said the government could raise the amount foreign investors are allowed to buy by another $5 billion.

The finance ministry will decide on the matter after consultations with the Reserve Bank of India and capital markets regulator Securities And Exchange Board of India, the sources said.

"I expect the government to take a call on this soon," said one of the officials involved in the process.

The sources declined to be identified as they were not authorised to talk to the media about the plans. ($1 = 59.0600 Indian Rupees) (Reporting by Himank Sharma, Rajesh Kumar Singh and Suvashree Dey Choudhury; Editing by Rafael Nam & Kim Coghill)