The limits for Foreign investment in India by SEBI registered Foreign Institutional Investors [FIIs] in government securities and corporate debt was issued by the Reserve Bank of India [RBI] vide A.P.(DIR Series) Circular No.80 dated January 24, 2013. However in the aforesaid circular there were also some sub limits which were required to be complied with. In order to simplify the existing limits, RBI vides Circular No. RBI/2012- 13/465 - A.P. (DIR Series) Circular No.94 dated 1st April, 2013 merged the existing debt limits into two broad categories as under.
- Government Debt limit: Government securities of USD 25 billion by merging the existing sub-limits under Government securities [(a)USD 10 billion for investment by FIIs in Government securities including Treasury Bills and (b) USD 15 billion for investment In Government dated securities by FIIs and long term investors]; and
- Corporate Debt Limit: Corporate debt of USD 51 billion by merging the existing sub-limits of Corporate debt [(a) USD 1 billion for Qualified Foreign Investors (QFIs), (b) USD 25 billon for investment by FIIs and long term investors in noninfrastructure sector and (c) USD 25 billion for investment by FIIs/QFIs/long term investors in infrastructure sector
The revised Position is as follows:
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- The Non-Resident Indians were not subject to any limit for investment in Government Securities as well as corporate debt. They will continue to be regulated as per extant guidelines.