RBI not in favour of offshore settlement for sovereign bonds: Report

The Reserve Bank of India is against allowing offshore settlement of government securities through platforms like Euroclear, preferring overseas investors to participate directly on the domestic NDS-OM platform to consolidate liquidity and improve price discovery. India removed taxes on foreign investment in government securities on June 5, after which Indian bonds have attracted about 2 billion US dollars from overseas investors compared with 1.6 billion US dollars in the first five months of the year. A Bloomberg index committee is also due to review India's potential inclusion in a wider global bond index this month.