FIIs invest $2.5 billion in debt market this year; $1 bn in March alone
New Delhi: Overseas investors have pumped in USD 2.5 billion into Indian debt market so far this year, out of which over USD 1 billion has been invested in March alone.
Market analysts attributed the inflows into the debt market to the easing of investment norms for Foreign Institutional Investors buying government and corporate bonds.
FIIs infused a net amount of USD 1.2 billion (Rs 6,532 crore) during March taking the total for 2013 so far to USD 2.49 billion (Rs 13,480 crore) for Indian bond market, as per data available with market regulator Securities and Exchange Board of India.
FIIs had pumped in USD 743 million (Rs 4,000 crore) in February and USD 551 million (Rs 2,947 crore) in January.
From March 1-26, FIIs were gross buyers of debt worth Rs 24,089 crore. They sold bonds worth Rs 17,557 crore, translating into a net investment of Rs 6,532 crore (USD 1.2 billion).
FIIs have also invested USD 1.5 billion (Rs 8,557 crore) in the stock market in March, taking their overall investment to USD 10.2 billion (Rs 55,055 crore) so far this year. They had pumped in USD 4.57 billion in February and USD 4.05 billion in January.
Last week, Finance Minister P Chidambaram announced that the government would remove all restrictions and sub-limits within the two broad categories - government securities and corporate bonds - from April 1.
It will keep the ceiling of USD 25 billion for government securities and USD 51 billion for bonds issues by companies.
FIIs had pumped in around USD 6.64 billion (nearly Rs 35,000 crore) in the Indian debt market in 2012, highest in two years, largely on account of increased investment limits in bonds and weak rupee.
As on March 25, the number of registered FIIs in the country stood at 1,760 and total number of sub-accounts was 6,331.
The I-T department, sources said, has got initial inputs about the company's operation after information was gathered by its investigation unit in Chennai.
"The Indian people, in turn, have shown their trust in us, recently voting Nokia the top trusted brand in the country," the Nokia spokesperson said.
"Nokia remains willing to cooperate fully with Indian tax authorities in accordance with all applicable laws. Nokia has enjoyed a long and fruitful relationship with India, and looks forward to a prompt and just resolution to this matter," the spokesperson added.