Auction-based allocation of FPI corporate debt limits activates when utilisation breaches the threshold, governing bids and reinvestment timelines. The Combined Corporate Debt Limit (CCDL) is available on tap until overall FPI utilisation reaches 95%, after which custodians must halt purchases and depositories notify exchanges to conduct auctions for unutilised limits. The circular sets auction procedures (timing, access, bid sizes, tick, allocation by price-time, minimum fee) and grants successful bidders 10 trading days to utilise allocations; reinvestment after sale/redemption is permitted for 2 trading days. Single FPI/group bidding is capped at one-tenth of the auctioned limits. Overseas issuance of rupee bonds by corporates is suspended while high utilisation persists. Reporting and dematerialisation requirements are mandated.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Auction-based allocation of FPI corporate debt limits activates when utilisation breaches the threshold, governing bids and reinvestment timelines.
The Combined Corporate Debt Limit (CCDL) is available on tap until overall FPI utilisation reaches 95%, after which custodians must halt purchases and depositories notify exchanges to conduct auctions for unutilised limits. The circular sets auction procedures (timing, access, bid sizes, tick, allocation by price-time, minimum fee) and grants successful bidders 10 trading days to utilise allocations; reinvestment after sale/redemption is permitted for 2 trading days. Single FPI/group bidding is capped at one-tenth of the auctioned limits. Overseas issuance of rupee bonds by corporates is suspended while high utilisation persists. Reporting and dematerialisation requirements are mandated.
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