Government is considering allowing individual foreign investors to directly buy corporate debt, a business daily reported, quoting finance ministry officials.
The business daily said on Friday that Finance Minister Pranab Mukherjee would take a final decision on whether to include the proposal in the 2012-13 Union Budget, which will be presented in parliament on March 16.
Ministry official were not immediately available to comment.
India currently allows foreign institutional investors (FIIs) to buy a total of $45 billion of corporate debt. Of this, $25 billion is allocated for infrastructure bonds.
In January this year, India allowed individual foreign investors to buy equities in the hope of boosting foreign capital inflows.
