To boost inflows of foreign funds into Indian capital markets, regulator Sebi on Wednesday raised the investment limit for FPI in central government securities to over Rs 1.91 lakh crore from next month.
Currently, investment limit for foreign portfolio investors (FPIs) is Rs 1,89,700 crore. The move is part of an effort by Securities and Exchange Board of India (Sebi) to push inflow from overseas investors in the country's capital markets. The new limits will come into effect from January 1, 2018.
Further, limit for long-term FPIs (sovereign wealth funds multilateral agencies, insurance funds, pension funds and foreign central banks) in central government bonds would increase to Rs 65,100 crore from the existing Rs 60,300 crore.
Besides, the new limit for investment by all FPIs in state development loans (SDl) will be Rs 31,500 crore, and that of long-term FPIs will be Rs 13,600 crore.