Allocation methodology of debt investment limits to FIIs
Summary
This circular amends the allocation methodology for debt investment limits to Foreign Institutional Investors (FIIs) by introducing a bidding process for unutilized government debt limits. It establishes a ceiling of Rs. 800 crore per entity for allocations made through this bidding mechanism on the National Stock Exchange. Additionally, it outlines a first-come-first-served process for remaining limits with a Rs. 249 crore ceiling and specifies procedural details for requests and utilization.
Text
Please refer to SEBI circular IMD/FII & C/ 37/2009 dated February 06, 2009 IMD/FII & C/39/2009 dated May 12, 2009 and providing the modalities for the allocation methodology for the debt investment limits.
It has been decided that the unutilised investment limits for government debt shall also be allocated in similar manner as specified in the circular mentioned above.
In partial amendment to clause 3 (h) of the aforesaid circular IMD/FII & C/ 37/2009, no single entity shall be allocated more than Rs.800 cr. of the government debt investment limit.
The bidding process shall be on September 08, 2009 on the National Stock Exchange.
The remaining limit for investment in Government debt shall be allocated among the FIIs/sub-accounts on a first come first served basis in terms of SEBI circular dated January 31, 2008, subject to a ceiling of Rs. 249 Cr. per registered entity.
The debt requests in this regard shall be forwarded to the dedicated email id fii_debtrequests@sebi.gov.in. The window for first come first served process shall open at 23:59 PM IST, September 09, 2009. Time period for utilization of the allocated debt limit through first come first served basis shall be 11 working days from the date of the allocation.
A copy of this circular is available at the web page “F.I.I.” on our website www.sebi.gov.in. The custodians are requested to bring the contents of this circular to the notice of their FII clients.
Source: SecMarx — Allocation methodology of debt investment limits to FIIs. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.