The move comes following a direction from the Reserve Bank of India (RBI).
In a circular, BSE said that it allowed Foreign Portfolio Investors (FPIs) to settle their trades in government bonds on T+2 basis.
RBI, last month, had said it is extending time for settling government bond trades to two days beginning April 6, 2015, in a bid to address operational issues faced by foreign investors.
All sale and purchase transactions in government securities, where at least one of the parties is an FPI, will be settled only on T+2 basis.
Further, all other trades not involving an FPI will continue to settle on T+1 basis.

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