RBI hikes FPI investment limits in Government Securities
The Dollar Business Bureau The Reserve Bank of India (RBI) on Tuesday increased the investment limits for foreign portfolio investors (FPIs) in central government securities (G-Secs) by Rs.64 billion and in State Development Loans (SDLs) by Rs.58 billion. “The limits for investment by FPIs for the quarter January–March 2018 is increased by Rs.64 billion in Central Government Securities (Central G-Secs) and Rs.58 billion in State Development Loans (SDLs),” RBI said in an announcement (A.P. DIR Series Circular No. 14). “The revised limits are allocated as per the modified framework prescribed in the RBI/2017-18/12 A.P. (Dir Series) Circular No.1 dated July 3, 2017,” it added. The total limit of G-Secs will be Rs.2564 billion, of which Rs.1913 billion for general category FPIs and Rs.651 billion ...
Govt opens tap for securities worth $2.6 bn for FPIs
Source:PTI Foreign Portfolio Investors will be able to invest an additional $2.6 billion (Rs.16,431 crore) from Monday onwards in various government securities, including those of the states. Out of this, investment limits worth about Rs.5,600 crore are being allotted through an e-auction, while the rest would be available on tap. In further opening up, the limits would be enhanced by another Rs.16,600 crore from January 1 ownwards. This follows decisions by the RBI and SEBI earlier this month to allow greater foreign fund flows into the government securities, which are generally favoured by Foreign Portfolio investors (FPIs) over the corporate bonds in India. The cap has been now raised to Rs.1,70,000 crore from Rs.1,53,569 crore previously. As against the previous limit, the ...
RBI to allow Rs.1,200 bn additional foreign investments in government bonds
The Dollar Business Bureau The Reserve Bank of India has decided to increase the investment limits in government securities for foreign portfolio investors (FPI) up to 5% of the outstanding stock by March 2018. “In aggregate terms, this is expected to open up room for additional investment of Rs.1,200 billion in the limit for central government securities by March 2018 over and above the existing limit of Rs.1,535 billion for all government securities (G-sec),” the RBI said in its bi-monthly monetary policy statement on Tuesday. The move is aimed at having a more predictable regime for investment by the foreign portfolio investors (FPI). Besides, the limits for FPIs in debt securities issued by state governments, also known as State Development Loans (SDLs), ...
