BackRBI hikes foreign investment caps in government securities
The limits on state development loans are proposed to be increased in two tranches, each of Rs35 billion, from 3 October, 2016 and 2 January, 2017 respectively, RBI says
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Mumbai: Reserve Bank on Friday increased the investment limits for foreign portfolio investors in government securities by Rs100 billion to Rs2,100 billion and also upped the limits in state government securities.
“As announced in the medium term framework, the limits for investment by FPIs in central government securities for the next half year are proposed to be increased in two tranches, each of Rs100 billion from 3 October, 2016 and 2 January, 2017 respectively," the RBI said in a notification.
Accordingly, the total limit for FPIs will go up to Rs2,100 billion (including Rs1,480 billion for all FPIs and an additional of Rs620 billion for those investing for long term) from 3 October. The same will move up to Rs2,200 billion from 2 January, 2017 and shall include Rs1,520 billion for all FPIs and an additional of Rs680 billion for those investing for long term, it said.
The limits on State Development Loans (SDLs) are proposed to be increased in two tranches, each of Rs35 billion, from 3 October, 2016 and 2 January, 2017 respectively, it said. The limits of SDLs will go up to Rs175 billion from the present Rs140 billion starting October 3, and will be hiked to Rs210 billion from 2 January, 2017, it said.
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