Allocation of debt limits in corporate debt old and Government Debt long term category to FIIs
Summary
SEBI allocates unutilized debt limits for corporate and government long-term categories to Foreign Institutional Investors through a bidding process on the BSE. The circular amends previous regulations by setting a maximum bid of INR 450 crore per entity and a minimum bid amount of INR 1 crore in each category. Custodians are required to remit bidding fees to SEBI within three working days following the completion of the bidding process.
Text
Based on the assessment of the utilization of the limits to FIIs for investments in corporate debt old and Government Debt long term category, it has been decided to allocate the unutilized limits. The bidding for this limit shall be done on the BSE from 15:30 hrs to 17:30 hrs, on March 16, 2012, in terms of SEBI circular IMD/FII&C/37/2009 dated February 06, 2009, subject to the modifications stated below:-
In partial amendment to clause 3 (h) of the aforesaid circular IMD/FII & C/37/2009, no single entity shall be allocated more than INR 450 cr. of the investment limit in each of above categories. Where a single entity bids on behalf of multiple entities, in terms of para 7 of SEBI circular CIR/IMD/FIIC/18 /2010 dated November 26, 2010, then such bid would be limited to INR 450 cr. in each of above categories for every such single entity.
In partial amendment to clause 3 (c) and 3(d) of the aforesaid circular IMD/FII &C/ 37/2009, the minimum amount which can be bid for shall be INR 1 cr. in each of above categories.
The fees for the bidding process shall be remitted to SEBI by the respective custodians of the entities within 3 working days after the bidding process.
Source: SecMarx — Allocation of debt limits in corporate debt old and Government Debt long term category to FIIs. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.