Allocation of Government debt long term limits to FIIs
Summary
This circular outlines the allocation of unutilized long-term Government debt limits to Foreign Institutional Investors (FIIs). It establishes two distinct allocation mechanisms: a bidding process conducted on the BSE and a first-come-first-served (FCFS) process. The document specifies monetary caps, bid parameters, submission deadlines for fees, and non-utilization charges applicable to these allocations.
Text
Based on the assessment of the allocation and the utilization of the limits to FIIs for investments in debt, it has been decided to allocate the unutilized limits in Government debt long term in the following manner:-
The bidding for these limits shall be done on the BSE from 15:30 hrs to 17:30 hrs, on August 05, 2011, in terms of SEBI circular IMD/FII&C/37/2009 dated February 06, 2009, subject to the modifications stated below:-
no single entity shall be allocated more than INR 600 cr. of the investment limit. Where a single entity bids on behalf of multiple entities... then such bid would be limited to INR 600 cr. for every such single entity.
the minimum amount which can be bid for shall be INR 100 cr. and the minimum tick size shall be INR 50 cr.
In terms of SEBI circular dated January 31, 2008, the Government debt long term limits shall be allocated in the FCFS basis subject to the following conditions:-
The remaining amount in Government debt long term other than bidding process shall be allocated among the FIIs/sub-accounts on a FCFS basis.
The debt requests in this regard shall be forwarded to the dedicated email id fii_debtrequests@sebi.gov.in. The window for FCFS process shall open at 08:30 AM IST, August 08, 2011.
Maximum limit per request under this process shall be INR 49 cr.
A non-utilisation charge would be levied at average successful bid premium (in bidding process) for non-utilized part from the allocation in FCFS.
The fees for the bidding process shall be remitted to SEBI by the respective custodians of the entities by August 10, 2011.
In case of FCFS, non-utilisation charge as mentioned at para 3.4 above shall be remitted to SEBI by the respective custodians of the entities within three working days from the end of utilization period.
Source: SecMarx — Allocation of Government debt long term limits to FIIs. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.