With RBI easing foreign ownership in Government debt, markets regulator Sebi on Tuesday issued detailed guidelines for hiking the overseas investment limits in such securities to Rs1,86,500 crore by January 1, 2016.
The Securities and Exchange Board of India (Sebi) said there will be a separate limit for investment by all Foreign Portfolio Investors (FPIs) in the state development loans (SDls).
It has been decided to enhance the limit for investment by FPIs in government securities in two tranches from October 12, 2015 and January 1, 2016.
“Debt limits of Rs3,500 crore each would be released on October 12, 2015 and January 1, 2016, respectively under this category,” it added.
In addition, Sebi said that limit for FPIs in central government securities would be hiked to Rs1,29,900 crore and Rs1,35,400 crore on October 12, this year and January 1, 2016 respectively from the existing limit of Rs1,24,432 crore.