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FIIs redeem $4.6bn debt in one month

The measures come as FIIs have pulled out over $3bn from the debt market in the past two weeks

January 01, 1970 5:30 IST | India Infoline News Service
The Government of India has enhanced the government debt limits by $5 billion to $30 billion.

The enhanced limit of $5 billion should be available for investments only to those FIIs which are registered with SEBI under the categories of sovereign wealth funds (SWFs), multilateral agencies, endowment funds, insurance funds, pension funds and foreign central banks, SEBI said in a circular on Wednesday.

The measures come as foreign funds have pulled out over USD 3 billion from the debt market in the past two weeks, contributing to a fall in the rupee to record lows.

Those FIIs which have exhausted their reinvestment limits, as a one time measure, a special window of up to $250 million per FII should be available till the date of the next auction i.e. June 20, 2013 subject to the aggregate investments in Government debt by all FIIs/QFIs being limited to $25 billion.

Such investments made by FIIs using the special window shall be subject to a lock-in of 90 days. Moreover, these investments will not be eligible for re-investment facility.




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