The Government of
India, in consultation with the Reserve Bank of India (‘RBI’) and the Securities
and Exchange Board of India (‘SEBI’), has raised the investment limit in
Government debt available to long-term investors registered with SEBI as FIIs
under the categories of: (i) Sovereign Wealth Funds (‘SWFs’), (ii) Multilateral
Agencies, (iii) Endowment Funds, (iv) Insurance Funds,
(v) Pensions Funds, and (vi) Foreign Central Banks, from the current limit of
US$ 5 billion to US$ 10 billion
The Government has
maintained a status quo in the overall Government debt limit of US$ 30 billion
available to all FIIs and QFIs. Hence, the revised debt limits will apply as
follows:
S.
No
|
Eligible
investors
|
Cap
(US$)
|
Remarks
|
1.
|
For all FIIs and
QFIs
|
20
billion
|
Investment in T-Bills
is capped at US$ 5.5 billion
|
2.
|
For FIIs registered as
SWFs, Multilateral Agencies, Endowment Funds, Insurance Funds, Pensions Funds,
and Foreign Central Banks
|
10
billion
|
|
TOTAL
|
30
billion
|
|
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