Mumbai: In a bid to boost investment in the infrastructure sector, the Reserve Bank of India on Friday hiked the limit on FII investment in listed non-convertible debentures and bonds issued by core segment companies by $20 billion (Rs 88,800 crore).
Till now, the limit for such investment was $15 billion in corporate debt, with an additional limit of $5 billion in bonds with a residual maturity of over five years.
This additional limit has been raised to $25 billion, taking the maximum limit of FII investment in bonds and non-convertible debentures issued by infrastructure companies to $40 billion, RBI said in a notification. The apex bank added that such investments by FIIs would have a minimum lock-in period of three years. However, the FIIs can trade among themselves during the lock-in period.