New Delhi, Feb 23 (IANS): Finance Minister Nirmala Sitharaman on Sunday apprised the G-20 countries on the steps taken in the Union Budget to open up India's bond market.

During the Finance Ministers & Central Bank Governors meeting in Riyadh, she outlined the efforts taken to deepen India's bond market such as removal of capital controls for identified categories of G-Secs and increased FPI limit on corporate bond market in the session on "Financial Resilience & Development" on the second day of the conference, the Finance Ministry said.

FPI limits with respect to investment in corporate bonds are proposed to be increased to 15 per cent. This may be a step towards local bond inclusion in global indices and internationalisation of the rupee.

The Finance Minister's announcement should help boost investments in the Indian debt market, the Ministry said, adding Sitharaman looked forward to continued engagement with the G20 on this agenda.

Hiking the FPI limit in corporate bonds and concessional tax rate on interest income earned by FPIs are among the steps that can increase capital flows into the market.

To promote a deep and liquid market, the government has announced that a netting legislation would be formulated to expand the scope of the corporate default swaps market. This would also significantly help banks manage their capital requirements and exposure monitoring.

Sitharaman also congratulated the G20's Saudi Presidency for identifying development of capital markets as a priority area.

She held a bilateral meeting with her Saudi counterpart Mohammed Al-Jadaan on the sidelines of the conference as well as with her Italian counterpart Roberto Gualtieri.