Friday, 7 February 2014

The investment limit in Government securities is increased for certain types of FIIs from US$ 5 billion to US$ 10 billion


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

No comments:

Share sale by Passive Shareholder taxable as Long-Term Capital Gains and not Business Income irrespective of non-compete clause in the SPA

  As per Income Tax Laws, any sum received or receivable in cash or kind under an agreement for not carrying business or profession is treat...