FII/QFI investments in Commercial Papers
Summary
SEBI modifies the investment limit for Foreign Institutional Investors and Qualified Foreign Investors in Commercial Papers from US$ 3.5 billion to US$ 2 billion. This adjustment is made within the existing Corporate Debt limit of US$ 51 billion, as directed by a reduction in the sub-limit by the Reserve Bank of India. The circular comes into effect immediately and requires custodians to notify their FII clients of these changes.
Text
SEBI had permitted FIIs and QFIs to invest upto US$ 3.5 billion in Commercial Papers within the Corporate Debt limit of US$ 51 billion.
The Reserve Bank of India has reduced the existing sub-limit for FII/QFI investment in Commercial Papers from USD 3.5 billion to USD 2 billion.
Eligible investors shall be permitted to invest upto US$ 2 billion in Commercial Papers within the Corporate Debt limit of US$ 51 billion.
Eligible investors may invest in Commercial Papers only upto US$ 2 billion and upto US$5 billion in Credit Enhanced Bonds within the limit of US$ 51 billion.
This circular shall come into effect immediately.
This circular is issued in exercise of powers conferred under SEBI Section 11 (1) of the Securities and Exchange Board of India Act, 1992.
The custodians are requested to bring the contents of this circular to the notice of their FII clients.
Source: SecMarx — FII/QFI investments in Commercial Papers. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.