RBI allows foreign investors to buy bonds of defaulter firms

MUMBAI (Reuters) - The Reserve Bank of India has allowed foreign investors to buy bonds issued by a company that has defaulted, it said on Thursday, in a move aimed at reducing banks' hefty bad debt burden.

The issuer will need to restructure the bond to comply with the minimum maturity tenure, as foreigners are not allowed to buy corporate bonds of below three years, the RBI said.

(Reporting by Suvashree Dey Choudhury and Neha Dasgupta; Editing by Clara Ferreira Marques)