Rationalisation of Debt Limits

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....have been proposed to simplify the framework of FII debt limits : a. Merger of existing debt limits into following two broad categories : i. Government securities of US$ 25 billion ( by merging Government Debt - Old of US$ 10 billion and Government Debt - Long Term of US$ 15 billion). ii. Corporate bonds of US$ 51 billion (by merging US$ 1 billion for QFIs, US$ 25 billion for FIIs and US$ 25....

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....limits shall be merged into a single category named 'Corporate Debt' : a. Corporate Debt - Old for FIIs (US$ 20 billion) b. Corporate Debt - Old for QFIs (US$ 1 billion) c. Corporate Debt - Long Term (US$ 5 billion) d. Corporate Debt Long Term Infra (US$ 12 billion) e. QFI investment in debt mutual fund schemes which invest in infra (US$ 3 billion) f. Investment in IDF(US$ 10 b....

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....h (if 20th is holiday, auction shall be done on the next working day), based on availability of free limits at the end of respective previous month. In partial modification of the said circular, it has been decided that FIIs can now invest in Corporate Debt without purchasing debt limits till the overall investment reaches 90% after which the auction mechanism would be initiated for allocation of ....

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.... of Corporate Debt limits allocated through the bidding process shall be 60 days , in terms of the SEBI circular CIR/IMD/FIIC/22/2012 dated November 07, 2012. 8. The status of utilization of debt limits as on March 31, 2013 indicating the quantum of limits which are freely available for investments by FIIs and QFIs shall be put on the SEBI website and thereafter, the monitoring of investments by ....