Foreign investment in India by SEBI registered FIIs in Government securities and corporate debt

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....stered Foreign Institutional Investors (FIIs) may purchase, on repatriation basis Government securities and non-convertible debentures (NCDs) / bonds issued by an Indian company subject to such terms and conditions as mentioned therein and limits as prescribed for the same by RBI and SEBI from time to time. The present limit for FII investments in Government securities is USD 20 billion and for corporate debt is USD 45 billion including sub-limit of USD 25 billion for the bonds of the infrastructure sector. 2. Attention of AD Category-I banks is also invited to A.P.(DIR Series) Circular No.135 dated June 25, 2012 in terms of which FIIs and long terms investors like Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, In....

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.... (c) A summary of revised position for Government Securities is given below: Instrument Limit Investor Conditions Remarks Government securities USD 10 billion FIIs No conditions - Government dated securities USD 15 billion FIIs and SWF, Multilateral Agencies, Pension/ Insurance/Endowment Funds, Foreign Central Banks Investments in short term paper like Treasury Bills not permitted No residual maturity requirement (B) Corporate Debt (d) The limit for FII investment in corporate debt in other than infrastructure sector stands enhanced by USD 5 billion, i.e., from USD 20 billion to USD 25 billion However, the enhanced limit of USD 5 billion shall not be available for investment in Certificate ....

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....f USD 22 billion for foreign investment in infrastructure sector has been uniformly kept at 15 months. The 5 years residual maturity requirement for investments by QFIs within the USD 3 billion limit has been modified to 3 years original maturity. 4. A summary of revised position for corporate debt limits is given below: Instrument Limit Investor Conditions Remarks (A) Non-Infrastructure Sector (i) Listed NCDs/ bonds, CPs USD 20 billion FII s Investment in CDs not permitted. No lock-in period requirement; No residual maturity restriction; No original maturity restriction. (ii) Listed NCDs/ bonds USD 5 billion FIIs, SWFs, Multilateral Agencies, Pension/ Insurance/ Endowment Funds, Foreign Cent....

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....at hold at least 25% of debt or equity or both in mutual funds in infra No lock in period requirement. Original maturity of 3 years; IDF - Rupee bonds/units registered as NBFC or Mutual Funds USD 10 billion (within the total limit of USD 25 billion)[investment by NRI not subject to this limit] FIIs, NRIs, SWFs, Multilateral Agencies, Pension/ Insurance/Endowment Funds, HNIs registered with SEBI, sub-account of FII or IDF Infrastructure as defined in the ECB guidelines IDFs set up as NBFCs may invest in debt securities of PPP infra projects and should have completed one year of commercial operations; IDFs set up as Mutual Funds would invest 90% in debt securities of infra companies/ SPV No lock-in period requirement ; R....