India, June 5 -- Foreign investment in Indian corporate bonds surged to Rs.20,996 crore in May - the highest in a decade - largely driven by a $3.35 billion bond sale by the Shapoorji Pallonji (SP) Group, according to a Business Standard report.

The momentum comes amid the RBI's move to scrap key restrictions for foreign portfolio investors (FPIs) in corporate debt, such as the short-term and concentration limits.

This policy shift is expected to boost foreign appetite, especially for high-yield, lower-rated bonds amid tightening spreads between Indian and US high-grade debt.

However, the success of the SP Group's unlisted bond deal is seen as a key trigger for renewed foreign interest in India's high-yield debt space.

Published by HT...