Markets regulator Sebi Thursday fixed Rs 2,44,323 crore as the combined debt limit for all foreign investments in Rupee denominated bonds for FPIs. This includes bonds issued both onshore and overseas by Indian corporates.
“The Rs 2,44,323 crore corporate debt limit for FPIs shall be redefined as the combined corporate debt limit for all foreign investments in Rupee denominated bonds issued both onshore and overseas by Indian corporates,” Securities and Exchange Board of India (Sebi) said in a circular.
However, these investments would not be treated as FPI investments and would not come under the purview of Sebi (Foreign Portfolio Investors) Regulations.
This circular would come into effect immediately, the regulator said. RBI in September 2015 allowed Indian corporates to issue Rupee denominated bonds overseas within the ceiling of FPI investments in corporate debt.
Sebi has asked depositories – NSDL and CDSL – to put in place the necessary systems for receiving data on foreign investments in Overseas Rupee denominated bonds from RBI on a periodic basis.