Increase in FII debt limit for Government and Corporate Debt category

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....Term category, the provision regarding 3 years residual maturity at the time of first purchase shall no longer be applicable. However, within this category, FIIs shall not be allowed to invest in short term paper like treasury bills. b) In terms of the aforesaid circular, the limit of US$ 5 billion in the Corporate Non-Infrastructure Debt category shall not be available for investment in Certificate of Deposits (CD) and Commercial Papers (CP). Investments in Certificate of Deposits are not permitted within the limit of US$ 20 billion. c) The US $ 1 billion limit for QFIs shall continue to be over and above the revised limit of US$ 25 billion available for FII investment in Corporate non-infrastructure debt category. d) For the US$ 12 ....

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....Instrument Cap (US$ bn) Restrictions S. No. Initial Maturity Residual Maturity Lock- in Investor Class Comments 1 Government Debt - Old 10 NA NA Nil FIIs 2 Government Debt - Long Term 15 NA NA Nil FIIs Investments in short term paper like treasury bills not permitted 3 Corporate Debt Old 21 Nil Nil Nil US$ 20 bn for FIIs Not available for investments in Certificate of Deposits US$ 1 bn for QFIs 4 Corporate Debt Long Term 5 Nil Nil Nil FIIs Not available for investment in Certificate of Deposits (CD) and Commercial Papers (CP) 5 Corporate Debt Long Term Infra 25 Sub-Category 5.a Corporate debt long term infra 12 Nil 15 months Nil FIIs 5.b QFI in mutual fund debt scheme w....