Investments by FPIs in Government Securities
Summary
The Securities and Exchange Board of India (SEBI) has revised the investment limits for Foreign Portfolio Investors (FPIs) in Government Securities effective January 1, 2018. The circular enhances the upper caps for Central Government securities, Long Term FPIs, State Development Loans (General), and State Development Loans (Long Term). All existing conditions regarding the allocation and monitoring of these debt limits continue to apply.
Text
It has been decided to revise the limit for investment by FPIs in Government Securities, for the January - March 2018 quarter, with effect from January 01, 2018, as follows: a. Limit for FPIs in Central Government securities shall be enhanced to INR 191,300 cr. b. Limit for Long Term FPIs... in Central Government securities shall be revised to INR 65,100 cr. c. The debt limit category of State Development Loans (SDL) shall be enhanced as follows: i. SDL-General shall be enhanced to INR 31,500 cr ii. SDL-Long Term shall be enhanced to INR 13,600 cr
Accordingly, the revised FPI debt limits would be as follows with effect from January 01, 2018: Government Debt – General 191,300; Government Debt – Long Term 65,100; SDL – General 31,500; SDL – Long Term 13,600; Total 301,500
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.