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Primary dealers today suggested the finance ministry to borrow more through short-term debt instruments to give a boost the Indian bond market.
The finance ministry had convened a meeting of primary dealers ahead of release of borrowing calender for the first half of the next financial year.
According to official sources, the dealers have suggested for "more shorter duration government debt instruments" to reduce mark to market losses.
The government has plans to borrow Rs 4.07 lakh crore from the money market in 2018-19.
The finance ministry is yet to finalise the borrowing calender, sources added.
The dealers, the sources said, also made a case of increasing the foreign portfolio investment (FPI) limit to attract more overseas investments in the government securities (G-secs).
In December last year, the Reserve Bank had increased the limits for investment by FPIs for JanuaryMarch 2018 quarter by Rs 6,400 crore in Central Government Securities (Central G-Secs) and Rs 5,800 crore in State Development Loans (SDLs), taking them to Rs 2,56,400 crore and 3,01,500 crore, respectively.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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