Investments by FPIs in Government Securities
Summary
This circular revises the investment limits for Foreign Portfolio Investors (FPIs) in Government Securities for the October-December 2017 quarter. It enhances the caps for Central Government securities, Long Term FPIs, and State Development Loans (SDL). The revised limits are effective immediately while all other existing conditions remain applicable.
Text
RBI announced a Medium Term Framework for FPI limits in Government securities, leading to SEBI issuing several prior circulars regarding allocation and monitoring of FPI debt investment limits.
Limit for FPIs in Central Government securities shall be enhanced to INR 189,700 cr.
Limit for Long Term FPIs (Sovereign Wealth Funds, Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks) in Central Government securities shall be revised to INR 60,300 cr.
SDL-General shall be enhanced to INR 30,000 cr.
SDL-Long Term shall be enhanced to INR 9,300 cr.
The revised upper caps with effect from October 03, 2017 are: Government Debt – General INR 189,700 cr; Government Debt – Long Term INR 60,300 cr; SDL – General INR 30,000 cr; SDL – Long Term INR 9,300 cr; Total INR 289,300 cr.
All other existing conditions with regard to allocation and monitoring of debt limits shall continue to apply.
This circular shall come into effect immediately. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992.
Custodians are requested to bring the contents of this circular to the notice of their FPI clients.
Source: SecMarx — Investments by FPIs in Government Securities. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.