Change in Investment Conditions /Restrictions for FII/QFI Investments in Government Debt Securities

Circular, CIR/IMD/FIIC/8/2014, dated 07th April, 2014

To

All Foreign Institutional Investors

through their designated Custodians of Securities

The Depositories (NSDL and CDSL)

Sub: - Change in Investment Conditions /Restrictions for FII/QFI Investments in Government Debt Securities

1. Pursuant to the announcements made in the First Bi-monthly Monetary Policy Statement, 2014-15 dated April 1, 2014 by the Reserve Bank of India (RBI), it has been decided as follows:

2. FIIs/QFIs shall henceforth be permitted to invest only in dated government securities having

residual maturity of one year or above.

3. Existing FII/QFI investments in T-Bills shall be allowed to taper off on maturity/sale. No further purchases in T-Bills shall be permitted. The investment limits vacated at the shorter end shall be available at longer maturities.

4. The overall Government Debt investment limit for FIIs/QFIs shall remain unchanged at US$ 30 billion.

5. Accordingly the FII/QFI debt investment limits are as follows:

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Source: Securities and Exchange Board of India.