INDIA: Increase in allocation of government and corporate debt investment limits to India FIIs

Monday November 29 2010

The Securities and Exchange Board of India has announced that the Government has increased the current limit of Fll investment in Government Securities by US $ 5 billion. The incremental limit shall be invested in securities with residual maturity of over five years. Further, the current limit of India Fll investment in corporate bonds is also increased by US $ 5 billion. This incremental limit shall be invested in corporate bonds with residual maturity of over five years issued by companies in the infrastructure sector.It has been decided that above incremental limits, shall be allocated to the market participants through bidding process and first come first served process. The unutilized limit from past allocations shall also be allocated to the market participants through bidding process and first come first served process.Click on the above link for more details.