RBI raises foreign investor limits

Last week, the RBI increased the corporate bond investment limit for foreign investors by taking out rupee denominated bonds from the ambit of total debt investment limit.

By: ENS Economic Bureau | Mumbai | Published: September 29, 2017 2:16 am
Reserve Bank of India, RBI, foreign portfolio investors, RBI, US dollar, foreign exchange, Indian express Currently, the limit for investment by foreign portfolio investors (FPIs) in corporate bonds is Rs 244,323 crore.

The Reserve Bank of India has increased foreign portfolio investors’ investment limits in central and state government securities by an aggregate Rs 14,200 crore for the October-December period. The RBI also increased limits for investment by FPIs for the December quarter by Rs 8,000 crore in Central government securities and by Rs 6,200 crore in state development loans, the central bank said.

Accordingly, the aggregate FPI limits have gone up to Rs 289,300 crore from the earlier Rs 275,100 crore. After the expansion the total investments permissible in G-secs will now stand at Rs 250,000 crore, while the same for state governments will be Rs 39,300 crore, it said.

The G-secs limits include a cap of Rs 189,700 crore in general securities, up from Rs 187,700 crore earlier, and Rs 60,300 crore in long term securities, up from the earlier Rs 54,300 crore. For the state development loans, the general limits are Rs 30,000 crore and Rs 9,300 crore in long term securities, which is up from the earlier Rs 28,500 crore and Rs 4,600 crore, respectively, the apex bank said. The revised limits will be effective October 3, the RBI notification said.

Last week, the RBI increased the corporate bond investment limit for foreign investors by taking out rupee denominated bonds from the ambit of total debt investment limit. Currently, the limit for investment by foreign portfolio investors (FPIs) in corporate bonds is Rs 244,323 crore.

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