Foreign Investments in Infrastructure Debt Funds

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..... or convertible debentures, subject to such terms and conditions mentioned therein and limits as prescribed for the same by the Reserve Bank and the Securities and Exchange Board of India (SEBI) from time to time. Attention of Authorised Dealers Category - I (AD Category - I) banks is also invited to AP (DIR Series) Circular No.8 dated August 9, 2011 and AP (DIR Series) Circular No.42 dated November 3, 2011 in terms of which Qualified Foreign Investors (QFIs as defined therein to mean non-resident investors, other than SEBI registered FIIs and SEBI registered FVCIs, who meet the KYC requirements of SEBI) are allowed to invest in units of domestic Mutual Funds. 2. It has now been decided to allow investment on repatriation basis by eligible .....

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..... SEBI registered eligible non- resident investors in IDFs (as per 3 (a) above) Foreign Currency and Rupee denominated bonds and rupee denominated units issued by IDFs (ii) SEBI registered FIIs who qualify as (i) above Foreign Currency and Rupee denominated bonds and rupee denominated units issued by IDFs (iii) SEBI registered FIIs who do not qualify as (i) above Rupee denominated bonds and units issued by IDFs (iv) NRIs Rupee denominated bonds and units issued by IDFs (v) HNIs (as per 3(d)) Foreign Currency and Rupee denominated bonds and rupee denominated units issued by IDFs 5. Original / Initial Maturity The original / initial maturity of all aforementioned securities at the time of first investment by a non resident inve .....

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..... Refinance by IDF would be up to 85% of the total debt covered by the concession agreement. IDFs set up as MFs would invest minimum of 90% of its funds in debt securities of infrastructure companies or SPVs across all infrastructure sectors, project stages and project types. (where 'infrastructure' is defined in terms of the extant ECB guidelines) (b) Foreign exchange hedging The facility of foreign exchange hedging would be available to the eligible non-resident IDF investors, IDFs as well as the infrastructure project companies exposed to the foreign exchange/ currency risk as per the extant provisions under Notification No. FEMA.25/2000-RB dated May 3, 2000, as amended from time to time. 10. AD Category - I banks may bring the conte .....

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