The Reserve Bank of India (RBI) on Thursday expressed itself in favour of longer-term debt coming into the country over the shorter-term ones. "We do have a restriction on debt, and within debt, we prefer longer-term duration investment to the shorter duration," Reserve Bank's Deputy Governor, Subir Gokarn, said while speaking at the 26th Skoch Summit. The Reserve Bank does not impose any restrictions on portfolio investment into equities but has restrictions on debt with a bias towards longer-term inflows (on the debt side), he said. While there are various restrictions on FDI, there are no restrictions on portfolio investment into equities, he said. "But there are restrictions on debt and within debt, "we prefer longer term duration investment to the shorter duration," the RBI Deputy Governor said. "This kind of gives us a preference order, a pecking order," he said.
Moneycontrol
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