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FII/QFI investments in Commercial Papers - SEBI - CIR/IMD/FIIC/4/2014Extract CIRCULAR CIR/IMD/FIIC/4/2014 February 14, 2014 To All Foreign Institutional Investors through their designated Custodians of Securities Dear Sir/Madam FII/QFI investments in Commercial Papers 1. Vide circular CIR/IMD/FIIC/6/2013 dated April 01, 2013, SEBI had permitted FIIs and QFIs to invest upto US$ 3.5 billion in Commercial Papers within the Corporate Debt limit of US$ 51 billion. 2. The Reserve Bank of India has reduced the existing sub-limit for FII/QFI investment in Commercial Papersfrom USD 3.5 billion to USD 2 billion. 3. Accordingly, in partial modification of Para 4 of the SEBI circular CIR/IMD/FIIC/6/2013 dated April 01, 2013, eligible investors shall be permitted to invest upto US$ 2 billion in Commercial Papers within the Corporate Debt limit of US$ 51 billion. The table summarizing the Corporate debt limit category is as follows: Type of Instrument Cap (US$ bn) Cap (INR Crore) Eligible Investors Remarks Corporate Debt 51 244,323 FIIs and QFIs Eligible investors may invest in Commercial Papers only upto US$ 2 billion and upto US$5 billion in Credit Enhanced Bonds within the limit of US$ 51 billion This circular shall come into effect immediately.This circular is issued in exercise of powers conferred under SEBI 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. The custodians are requested to bring the contents of this circular to the notice of their FII clients. Yours Faithfully S Madhusudhanan Deputy General Manager +91-22-26449614 [email protected]
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