Sebi Hikes FPI Investment Limit for Govt Debt

FPI investment limitMarket Regulator, Security Exchange board of India (Sebi) has announced that it has raised the Foreign Portfolio Investment (FPI) limit in Central Govt securities to Rs 1,89,700 crore to enhance inflow of foreign funds into Indian capital markets.

Earlier, the limit for FPIs was about Rs. 1,87,700 crore. The step is part of the regulator’s effort to boost up inflow from overseas investors into the country’s capital markets.

Sebi’s circular reads – “It has been decided to revise the limit for investment by Foreign Portfolio Investments in government securities for the Oct-Dec 2017 quarter. Limit for FPIs in central govt securities will be enhanced to Rs.1,89,700 crore”. The limits came into force from Wednesday, 5 th October, 2017.

The regulator has also revised the investment limit of long term Foreign Portfolio Investments including insurance funds, sovereign wealth funds, pension funds and & central banks, in govt securities to Rs Rs.60300 cr, from Rs 54300 cr. Moreover, the new limit for investment by all FPIs in state development loans is Rs 30000 crore, and that of long term FPIs is Rs.9300 crore.