Government unveils reforms to deepen G‑Sec market and boost foreign portfolio investment in equities

The government announced a major reform package aimed at the gilt‑secured (G‑Sec) market. The measures seek to deepen market liquidity and broaden participation. A key component is facilitating greater foreign portfolio investment (FPI) in the equity segment. The reforms intend to attract more overseas capital to Indian equities. Officials said the steps will improve price discovery and market efficiency. The policy changes are expected to lower borrowing costs for issuers. Critics caution about potential volatility from increased foreign flows. The government plans to implement the reforms over the coming months.