TaxTMI 
TaxTMI 
Clarification on Government Debt Investment Limits
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..../2014 dated July 23, 2014 whereby the investment limit in government securities available to all FPIs was enhanced by USD 5 billion by correspondingly reducing the amount available to long term FPIs from USD 10 billion to USD 5 billion within the overall limit of USD 30 billion. It was also stated in the aforesaid circular that all future investments in this USD 25 billion debt limit shall be requ....
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....rther, all future investment against the limit vacated when the current investment by an FPI runs off either through sale or redemption shall also be required to be made in government bonds with a minimum residual maturity of three years. 2 Government Debt - Long Term 5 29,137 FPIs which are registered with SEBI under the categories of Sovereign Wealth Funds (SWFs), Multilateral Agencies, End....
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....o halt all FPI purchases in debt securities in that category b. The depositories shall then inform NSE (since the last auction was held on BSE) regarding the unutilised debt limits for conduct of auction. Upon receipt of information from the depositories, NSE shall conduct an auction for the allocation of unutilised debt limits on the second working day c. The auction would be held only if the....
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....debt securities, the FPI will have a re-investment period 5 days. If the reinvestment is not made within 5 working days, then the limits shall come back to the pool of free limits. f. The subsequent auction would be held 20 days after the previous auction, subject to the fulfilment of the condition mentioned at Point (C) above. The auction mechanism shall be discontinued and the limits shall be ....