Clarification on Government Debt Investment Limits

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..... id circular that all future investments in this USD 25 billion debt limit shall be required to be made in government bonds with a minimum residual maturity of three years. 2. It is clarified that all investments by Long Term FPIs (Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks) in the USD 5 billion Government debt limit shall continue to be made in Government bonds having a minimum residual maturity of 1 year. 3. Accordingly, the Government debt investment limits shall be as follows : S. No. Type of limit Cap (US$ bn) Cap (INR Crore) Eligible Investors .....

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..... t exceeds 90% in either of the debt limit categories (as indicated by the debt utilisation status updated daily on the websites of NSDL and CDSL), the following procedure shall be followed: a. The depositories (NSDL and CDSL) shall direct the DDPs to halt all FPI purchases in debt securities in that category b. The depositories shall then inform NSE (since the last auction was held on BSE) regarding the unutilised debt limits for conduct of auction. Upon receipt of information from the depositories, NSE shall conduct an auction for the allocation of unutilised debt limits on the second working day c. The auction would be held only if the free limit is greater than or equal to INR 100 cr. The auction shall be conducted in the follow .....

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..... bt limit utilisation falls below 85%. g. In order to provide operational flexibility to FPIs, it is clarified that there would be no other re-investment restrictions 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, S MADHUSUDHANAN Deputy General Manager Tel No.: 022-26449614 Email: [email protected] - Circular - Trade Notice - Public Notice - Instructio .....

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