Change in Government Debt Investment Limits - SEBI - CIR/IMD/FIIC/3/2014

CIRCULAR CIR/IMD/FIIC/3/2014 January 29, 2014 To All Foreign Institutional Investors through their designated Custodians of Securities The Depositories (NSDL and CDSL) Sir / Madam, 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 Email: [email protected]