International investors are increasingly looking for ways to invest in Indian corporate debt. They are attracted by the combination of safety of capital coupled with higher returns than are available from companies in western markets. Data released by the Securities and Exchange board of India (SEBI), shows that Foreign Institutional Investors (FIIs) invested US$ 6.88 billion in debt in India compared to US$ 6.08 billion in equity from January to June 2010.

The Kotak Fixed Maturity Plan-I is a close ended debt fund which aims to generate returns through investments in debt and money market instruments such as domestic bonds of Indian corporate with a tenure of about 12 months. The fund is denominated in US dollars. Kotak's next FMP will look to raise a maximum of US$250 million from investors across the globe. Paul Parambi, Head of the International Business Kotak Mahindra Bank Limited commented, "From 1992-2009, cumulative investment by FIIs into Indian debt totaled US$ 7.46 billion, whereas, within just the first six months of 2010, net FII inflows in Indian debt touched US$6.88 billion.