FPI Investment Limit for Central Government Securities Raised by SEBI
SEBI has decided to raise the investment limit for foreign portfolio investors to boost inflows of foreign funds into Indian capital markets. It will be raising the investment limit for FPI in central government securities and corporate bonds in two tranches. This step is taken to enhance limit for investment by FPIs in two tranches from April 12 and October 1.
SEBI is taking this necessary move to push inflow from overseas investors in the country’s capital markets.
According to regulator, the limit for FPIs in central government securities shall be enhanced to Rs 2,07,300 crore on April 12 and Rs 2,23,300 crore on October 1, respectively.
Previously, the investment limit for FPI was Rs 1,89,700 crore. Apart from this, the limit for long term FPIs in central government securities has been enhanced to Rs 78,700 crore from yesterday. However, this will be further increased to Rs 92,300 crore on October 1. Previously, for long term FPIs, the existing limit was Rs 44,100 crore.
Experts believe that the sub-limit for investment by long term FPIs in the infrastructure sector shall be done away with and the existing investment and free limits shall be merged into the corporate debt investment limits.