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

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....hase, 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, Insurance Funds, Pension Funds and Foreign Central Banks t....

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....ven 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 of Deposits (CD) and Commercial Papers (CP). Accordingly, the total corporate debt limit stands enha....

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....he 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 Central Banks Investments in CPs and CDs not permitted No lock-in period requirement; No residual maturity restriction; No original matur....