INDIA: Changes to debt limit rules for India FIIs

Thursday November 8 2012

In a circular, the Securities and Exchange Board of India has announced changes to the debt limit rules for India foreign institutional investors. Foreign investors will be allowed to re-invest up to 50 per cent of their debt holdings from the previous calendar year starting in January 2014.

SEBI has also cut the period to use up corporate debt limits allocated through bidding process to 60 days from the current 90 days, and government debt limits allocated through bidding process to 30 days from 45 days, effective immediately.

Foreign investors can also start buying and using up limits for long term infrastructure corporate debt without SEBI approval for up to 90 per cent of the total category limit of $12 billion.