Change in Government Debt Investment Limits
Summary
The Securities and Exchange Board of India (SEBI) has enhanced the sub-limit for Government debt investments from USD 5 billion to USD 10 billion. This revised limit applies specifically to Foreign Institutional Investors registered as Sovereign Wealth Funds, Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds, and Foreign Central Banks. The overall Government debt investment cap remains unchanged at USD 30 billion, with a separate US$ 5.5 billion cap on Treasury Bills for all eligible investors.
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Government of India has now decided to enhance this sub-limit from USD 5 billion to USD 10 billion within the overall Government debt limit of USD 30 billion, for FIIs which are registered with SEBI under the categories of Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks.
In partial modification of para 2 of the SEBI circular CIR/IMD/FIIC/8/2013 dated June 12, 2013, it has now been decided to revise this limit from USD 5 billion to USD 10 billion within the overall Government debt limit of USD 30 billion.
The Government debt investment limits shall now be as follows : S.No. 1 Type of limit Government Debt Cap (US$ bn) 20 Cap (INR Crore) 99,546 Eligible Investors FIIs and QFIs Remarks Eligible investors may invest in Treasury Bills only up to US$ 5.5 billion (INR 25,416 cr) within the limit of US$ 20 billion. S.No. 2 Type of limit Government Debt Cap (US$ bn) 10 Cap (INR Crore) 54,023 Eligible Investors FIIs which are registered with SEBI under the categories of Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks. Total Cap (US$ bn) 30 Cap (INR Crore) 153,569.
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.
Source: SecMarx — Change in Government Debt Investment Limits. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.