SEBI drastically pares debt investment limit for FIIs
07 Aug 2010
The Securities and Exchange Board of India (SEBI) has lowered the investment limit for foreign institutional investors (FIIs) in both government and corporate debt.
In fresh regulations issued on Friday, the market regulator set the ceiling on investment by a single FII in government debt at Rs100 crore against the earlier of Rs10,000 crore.
No single FII can also buy more than Rs1,000 crore of corporate debt against the earlier investment limit of Rs10,000 crore.
SEBI has also lowered the minimum amount of government debt, which an FII can bid for to Rs50 crore from the earlier Rs250 crore.
Accordingly, the minimum amount payable in a single tranche for government debt will be Rs50 crore for FIIs against the earlier Rs100 crore.
In the case of corporate debt, the minimum bid amount has been lowered to Rs50 crore from Rs250 crore earlier.