INDIA: Changes to India foreign investment limits in government debt by FIIs and QFIs

Monday April 7 2014

The Securities and Exchange Board of India has announced changes to the investment restrictions and conditions applicable to Foreign Institutional Investors and Qualified Foreign Investors in government debt securities.

Under the revisions, FIIs/QFIs shall be permitted to invest only in dated government securities having residual maturity of one year or above. Existing FII/QFI investments in T-Bills shall be allowed to taper off on maturity/sale. No further purchases in T-Bills shall be permitted. The investment limits vacated at the shorter end shall be available at longer maturities.

The overall Government Debt investment limit for FIIs/QFIs shall remain unchanged at US$ 30 billion.

Click on the above link for the circular.