Sebi raises FII debt cap

Market regulator Sebi today raised the limit of cumulative investment in government debt securities by FIIs and their sub accounts by 600 million to 3.2 billion. 8220;It has now been decided to further enhance the limit for FIIs/sub-accounts cumulative investment in Government/Treasury Bills to 3.2 billion,8221; Sebi said in a circular. Earlier last year, Sebi had raised this limit to 2.6 billion from 2 billion. The market regulator has also decided to treat all investments by FIIs and their sub-accounts in units of debt-oriented mutual funds as corporate debt only.