Circular,
CIR/IMD/FIIC/ 17/2014, dated 23rd July, 2014
All Foreign
Portfolio Investors
through their
Designated Depository Participants
The Depositories
(NSDL and CDSL)
1. Present debt investment limits
available for FPI investments in Government securities (G-Secs) include a USD
20 billion limit for all FPIs and another USD 10 billion limit for Long Term
FPIs. While the USD 20 billion limit has been fully utilized, the USD 10
billion limit has been utilized only up to 22.86%.
2. Therefore, in partial modification of
para 5 of the SEBI circular CIR/IMD/FIIC/8/2014 dated April 07, 2014, it has
been decided to enhance the investment limit in government securities available
to all FPIs by USD 5 billion by correspondingly reducing the amount available
to long term FPIs from USD 10 billion to USD 5 billion within the overall limit
of USD 30 billion.
3. The incremental investment limit of USD
5 billion (INR 24,886 cr) shall be required to be invested in government bonds
with a minimum residual maturity of three years. Further, all future investment
against the limit vacated when the current investment by an FPI runs off either
through sale or redemption shall also be required to be made in government
bonds with a minimum residual maturity of three years. It is, however,
clarified that there will be no lock-in period and FPIs shall be free to sell
the securities (including those that are presently held with less than three
years of residual maturity) to the domestic investors.
4. The Government debt investment limit
shall now be as follows:
.
.
.
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