Amendment to 70:30 equity investment ratio for FIIs
Summary
The circular amends the investment composition requirement for Foreign Institutional Investors (FIIs) in India. The mandatory 70:30 ratio of equity to debt investments is now applied at the global level across all approved sub-accounts rather than individually per sub-account. This amendment applies immediately, with a specific exception for registered FIIs that are funds themselves.
Text
The condition has since been amended as follows: 'As a regiatered FII you may invest in all securities... The aggreggte investment in equity and equity related instruments... shall not be less than 70% of the aggregate investments made by you in all the approved sub-accounts.'
This would imply that the ration of 70:30 between equity and debt would now be applied at global level of the aggregate investments made by a Fund Manager/Power of Attorney Holder/Nominee Company through the sub-accounts approved by us...
Please note that in cases where the registered FII is a Fund itself, the ratio would continue to tbe applied to the Fund only.
The amendment comes into effect immediately.
Source: SecMarx — Amendment to 70:30 equity investment ratio for FIIs. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.