PDs pitch for more short-term debt instruments

Primary dealers on Wednesday asked the government to issue more shorter-dated securities to help boost   the declining demand in debt markets, said a finance ministry official after meeting with market participants about the country's borrowing plans.

The ministry had convened a meeting of primary dealers ahead of release of borrowing calendar 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 ministry is yet to finalise the borrowing calendar, sources said.

The dealers also made a case of increasing the FPI limit to attract more overseas investments in the government securities (G-secs).