FII/QFI investments in Security Receipts
Summary
The circular mandates that FII investments in Security Receipts issued by Asset Reconstruction Companies must be counted against the extant Corporate Debt Limits. These investments are subject to terms and conditions specified by the Reserve Bank of India from time to time. The directive was issued under Section 11(1) of the SEBI Act, 1992, to regulate securities markets and protect investor interests.
Text
FII investments in Security Receipts issued by Asset Reconstruction Companies should be within the FII limit on corporate bonds prescribed from time to time.
Investments in Security Receipts issued by Asset Reconstruction Companies by FII's shall be reckoned against the extant Corporate Debt Limits.
The investments of FIIs in Security Receipts shall be subject to terms and conditions as specified by the Reserve Bank of India from time to time.
Source: SecMarx — FII/QFI investments in Security Receipts. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.