REGULATORY UPDATE: SEBI - INVESTMENTS BY FOREIGN PORTFOLIO INVESTORS (FPI) IN GOVERNMENT SECURITIES

The SEBI vide its circular no. IMD/FPIC/CIR/P/2017/113 dated 4 October 2017 has revised Foreign Portfolio Investors (FPI) debt limits for investment in Government securities for the October-December 2017 quarter as below:

  1. FPI investment limit in Central Government securities has been raised to Rs. 189,700 Crore for boosting inflows of foreign funds into Indian capital markets.
  2. Limit for Long Term FPI (Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks) in Central Government securities is revised to Rs. 60,300 Crore.
  • The limit for investment by all FPIs in State Development Loans (SDL) has been enhanced as follows:
  • SDL-General shall be enhanced to Rs. 30,000 Crore.
  • SDL-Long Term shall be enhanced to Rs. 9,300 Crore.

The move is in line with RBI revising the limit for investment by FPIs in government securities. Source:http://www.sebi.gov.in/legal/circulars/oct-2017/investments-by-fpis-in-government-securities_36165.html  

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