Government debt investment limit changes require longer maturity bonds and enable auctions to allocate remaining capacity. The circular establishes a USD 25 billion Government Debt limit for FPIs requiring incremental investments to be in government bonds with a minimum residual maturity of three years, and a separate USD 5 billion Long Term limit for specified institutional FPIs permitting investment only in dated securities with at least one year residual maturity. An auction mechanism activates when utilisation reaches 90%, with specified auction parameters, a minimum free limit threshold, 15-day utilisation and five-day reinvestment windows, and reinstatement of on-tap investment when utilisation falls below 85%.
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.
Government debt investment limit changes require longer maturity bonds and enable auctions to allocate remaining capacity.
The circular establishes a USD 25 billion Government Debt limit for FPIs requiring incremental investments to be in government bonds with a minimum residual maturity of three years, and a separate USD 5 billion Long Term limit for specified institutional FPIs permitting investment only in dated securities with at least one year residual maturity. An auction mechanism activates when utilisation reaches 90%, with specified auction parameters, a minimum free limit threshold, 15-day utilisation and five-day reinvestment windows, and reinstatement of on-tap investment when utilisation falls below 85%.
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