Sovereign credit rating limits govern IIO bond, debt and deposit exposures through graded caps and a specified buffer. IIO exposure to bonds, debts and deposits is limited according to the sovereign credit rating of the country from which the instruments are offered. The ... Summary
Sovereign credit rating limits govern IIO bond, debt and deposit exposures through graded caps and a specified buffer.
IIO exposure to bonds, debts and deposits is limited according to the sovereign credit rating of the country from which the instruments are offered. The framework covers fixed-income instruments, debt mutual funds, loans, corporate and bank deposits, and similar rights. Maximum exposure is 100 per cent for SCR-RC 1 and India including IFSC, 50 per cent with a 10 per cent buffer for SCR-RC 2 and 3, 20 per cent for SCR-RC 4 to 6, and 10 per cent for SCR-RC 7 and lower within the investible grade.
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