No plans to introduce diaspora bonds, says FM Sitharaman

Finance Minister Nirmala Sitharaman on Monday said the government has no plans to introduce diaspora bonds.

In a written reply to the Lok Sabha, she said the government, in coordination with Securities and Exchange Board of India (Sebi) and Reserve Bank of India, has taken various steps to develop the bond market with a view to facilitate increased access to capital for corporates.

To a question on whether the government plans to introduce diaspora bonds to create an avenue for the Indian diaspora to invest in India, Sitharaman said, "The Government has no plans, as on date to introduce diaspora bonds".

The steps taken by the government to deepen the bond market include reduced stamp duty rates and listing of commercial papers on stock exchanges.

Sitharaman further said the government has put in place an investor-friendly foreign direct investment policy wherein most sectors are now open for 100 per cent FDI under the automatic route.

Recently foreign investment in insurance intermediaries and the defence industry has been raised from 49 per cent to 100 per cent and 74 per cent, respectively.

"The Government reviews the FDI policy on an ongoing basis and makes significant changes from time to time, to ensure that India remains an attractive investor-friendly destination," she added.