SEBI reduces FII debt limit utilisation period by 2 days

India Infoline News Service | Mumbai |

Foreign investors are allowed to use debt limits allocated to them during monthly auction till the 17th day of succeeding month, SEBI says

Market regulator SEBI (Securities and Exchange Board of India) reduced the time given for foreign institutional investors (FIIs) to utilise the debt limits purchased in auctions by two days.

FIIs/QFIs shall be permitted to utilise the debt limits allocated to them in each monthly auction till the 17th day of the succeeding month, SEBI said in a circular on Wednesday.

The objective is to ensure that utilised limits are auctioned during the same month.

Earlier, FIIs purchasing debt limits in the auction (that SEBI conducts on the 20th of every month) had time till 19th of next month to utilise the debt limits.

"The limits not utilised by FIIs as on the 19th are added back to the pool of free limits. Since the date of expiry of the utilisation period for debt limits (19th) exceeds the cut off date for the free limit to be auctioned (18th), by one day, the unutilised limits being freed up on the 19th are auctioned in the subsequent month and not in the same month. On account of this, free limits remain unavailable for investors for two months," SEBI said in a circular.


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