SEBI has decided to raise the investment limit for foreign portfolio investors (FPIs), in central government securities and corporate bonds in two tranches.

It has been decided to raise the investment limit for FPIs in two tranches from April 12 and October 12. This move is effected to increase inflows of foreign funds, in Indian capital markets.

SEBI in a circular stated, “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.” Earlier, investment limit for FPIs was Rs.1,89,700 crore.

Limit for long term FPIs: sovereign wealth funds, multilateral agencies, insurance funds, pension funds and foreign central banks in central government securities has been increased to Rs.78,700 crore from yesterday. This will further increase to Rs.92,300 crore on October 1. Earlier, the existing limit was Rs.44,100 crore for long term FPIs.

Further, the corporate debt investment limit has been increased to Rs.2,66,700 crore from yesterday and it will be further increase to Rs.2,89,100 crore from October. The existing limit was Rs.2,44,323 crore.

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