INDIA: SEBI Revise Limit for Investments in FPI’s

Thursday October 12 2017

The securities and Exchange Board of India (SEBI) has decided to revise the limit for investment by FPIs in Government Securities, for the October-December 2017 quarter.

Please see below changes:

• Limit for FPIs in Central Government securities shall be enhanced to INR 189,700cr.
• Limit for Long Term FPIs Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks)in Central Government securities shall be revised to INR 60,300cr.
• The debt limit category of State Development Loans (SDL) shall be enhanced as follows:

1. SDL-General shall be enhanced to INR 30,000 cr
2. SDL-Long Term shall be enhanced to INR 9,300 cr.

Accordingly, the revised FPI debt limits would be as follows:

Government Debt (general)- Revised upper cap with effect from October 03, 2017 (INR cr) 189,700

Government Debt (long term)- Revised upper cap with effect from October 03, 2017 (INR cr) 60,300

SDL (general) – Revised upper cap with effect from October 03, 2017 (INR cr) 30,000

SDL (long term) – Revised upper cap with effect from October 03, 2017 (INR cr) 9,300

All other existing conditions with regard to allocation and monitoring of debt limits shall continue to apply.

The circular shall come into effect immediately. Additionally, the circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992

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