Investment sub-limit for foreign fund in govt papers hiked
However, the total limit of $30 billion available for foreign investments in government securities has not been tinkered with.
Mumbai: The Reserve Bank today doubled the sub-limit for investment in government securities to $10 billion by long-term investors like sovereign wealth funds and foreign central banks, with a view to attract more funds.
"It has now been decided, in consultation with government to enhance, with immediate effect, the existing sub-limit of $5 billion available to long-term investors registered with Sebi -- SWFs, multilateral agencies, pension and foreign central banks for investment in government securities to $10 billion...," RBI said in a notification.[caption id="attachment_1365467" align="alignleft" width="380"]
The RBI logo. Reuters[/caption]
However, the total limit of $30 billion available for foreign investments in government securities has not been tinkered with.
Foreign institutional investors-qualified foreign investors (QFIs) and long-term investors-registered with Sebi are allowed to purchase government securities and non-convertible debentures (NCDs) or bonds issued by an Indian company within the limit of $30 billion.
The operational guidelines in this regard will be issued by Sebi, it said.
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