Investments by FPIs in Government Securities - SEBI - IMD/FPIC/CIR/P/2017/113

CIRCULAR IMD/FPIC/CIR/P/2017/113 October 04, 2017 To All Foreign Portfolio Investors through their designated Custodians of Securities The Depositories (NSDL and CDSL) Sir / Madam, Sub: Investments by FPIs in Government Securities 1. RBI in its Fourth Bi-monthly Policy Statement for the year 2015-16, dated September 29, 2015 had announced a Medium Term Framework (MTF) for FPI limits in Government securities in consultation with the Government of India. Accordingly, SEBI had issued circulars CIR/IMD/FPIC/8/2015 dated October 06, 2015, IMD/FPIC/CIR/P/2016/45 dated March 29, 2016 and IMD/FPIC/CIR/P/2016/107 dated October 03, 2016, IMD/FPIC/CIR/P/2017/30 dated April 03, 2017 and IMD/FPIC/CIR/P/2017/74 dated July 04, 2017 regarding the allocation and monitoring of FPI debt investment limits in Government securities. 2. It has been decided to revise the limit for investment by FPIs in Government Securities, for the October - December 2017 quarter, as follows: a. Limit for FPIs in Central Government securities shall be enhanced to INR 189,700 cr. b. Limit for Long Term FPIs (Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks) in Central Government securities shall be revised to INR 60,300 cr. c. The debt limit category of State Development Loans (SDL) shall be enhanced as follows: i. SDL-General shall be enhanced to INR 30,000 cr ii. SDL-Long Term shall be enhanced to INR 9,300 cr 3. Accordingly, the revised FPI debt limits would be as follows: Type of Instrument Upper Cap as on July 04, 2017 (INR cr) Revised Upper Cap with effect from October 03, 2017 (INR cr) Government Debt General 187,700 189,700 Government Debt Long Term 54,300 60,300 SDL General 28,500 30,000 SDL Long Term 4,600 9,300 Total 275,100 289,300 4. All other existing conditions with regard to allocation and monitoring of debt limits shall continue to apply. 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 FPI clients. Yours faithfully, ACHAL SINGH Deputy General Manager Tel No.: 022-26449619 Email: [email protected]