Securities and Exchange Board of India
CIRCULAR
CIR/IMD/FIIC/3/2014
January 29, 2014
Sub: Change in Government Debt Investment Limits
1. Government of India enhanced the Government debt investment limits by USD 5 billion in June 2013. Vide circular CIR/IMD/FIIC/8/2013 dated June 12, 2013, the additional limits of USD 5 billion were made available within the overall Government debt limit of USD 30 billion. This additional limit was made available only to FIIs which are registered with SEBI under the categories of Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks.
2. Government of India has now decided to enhance this sub-limit from USD 5 billion to USD 10 billion within the overall Government debt limit of USD 30 billion, for FIIs which are registered with SEBI under the categories of Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks.3. In partial modification of para 2 of the SEBI circular CIR/IMD/FIIC/8/2013 dated June 12, 2013, it has now been decided to revise this limit from USD 5 billion to USD 10 billion within the overall Government debt limit of USD 30 billion.
4. The Government debt investment limits shall now be as follows :
| S. No. | Type of limit | Cap (US$ bn) | Cap
(INR Crore) |
Eligible Investors | Remarks |
| 1 | Government Debt | 20 | 99,546 | FIIs and QFIs | Eligible investors may invest in Treasury
Bills only up to US$ 5.5 billion (INR 25,416 cr) within the limit of US$ 20 billion |
| 2 | Government Debt | 10 | 54,023 | FIIs which are
registered with SEBI under the categories of Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks |
|
| Total | 30 | 153,569 |
This circular shall come into effect immediately. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992.
A copy of this circular is available at the web page “Circulars” on our website www.sebi.gov.in. Custodians are requested to bring the contents of this circular to the notice of their FII clients.
Yours faithfully,
S MADHUSUDHANAN
Deputy General Manager
Tel No.: 022-26449614
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Related RBI Notification is as follows :-
RBI/2013-14/473
A.P. (DIR Series) Circular No.99
January 29, 2014
To,
All Authorised Persons
Madam/ Sir,
Foreign investment in India by SEBI registered Long term investors in
Government dated Securities
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to Schedule 5 to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA.20/2000-RB dated May 3, 2000, as amended from time to time, in terms of which SEBI registered Foreign Institutional Investors (FIIs), SEBI registered Qualified Foreign Investors (QFIs) and long term investors registered with SEBI may purchase, on repatriation basis Government securities and non-convertible debentures (NCDs) / bonds issued by an Indian company subject to such terms and conditions as mentioned therein and limits as prescribed for the same by RBI and SEBI from time to time.
2. Attention of AD Category-I banks is also invited to A.P.(DIR Series) Circular No.111 dated June 12, 2013 in terms of which the present limit for investments by FIIs, QFIs and long term investors in Government securities stands at USD 30 billion, out of which a sub-limit of USD 5 billion is available for investment by long term investors in Government dated securities.
3. On a review, it has now been decided, in consultation with Government of India to enhance, with immediate effect, the existing sub-limit of USD 5 billion available to long term investors registered with SEBI – Sovereign Wealth Funds (SWFs), Multilateral Agencies, Pension/ Insurance/ Endowment Funds and Foreign Central Banks for investment in Government dated securities to USD 10 billion, within the total limit of USD 30 billion available for foreign investments in Government securities.
4. The operational guidelines in this regard will be issued by SEBI.
5. All other existing conditions for investment in Government securities remain unchanged.
6. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
7. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager-in-Charge
Email: smadhu@sebi.gov.in
