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RBI hikes foreign investment caps in G-secs

RBI hikes foreign investment caps in G-secs



Reserve Bank today increased the investment limits for foreign portfolio investors in government securities by Rs 100 billion to Rs 2,100 billion and also upped the limits in state government securities.


“As announced in the medium term framework, the limits for investment by FPIs in Central Government securities for the next half year are proposed to be increased in two tranches, each of Rs 100 billion from October 3, 2016 and January 2, 2017 respectively,” it said in a notification.


Accordingly, the total limit for FPIs will go up to Rs 2,100 billion (including Rs 1,480 billion for all FPIs and an additional of Rs 620 billion for those investing for long term) from October 3.


The same will move up to Rs 2,200 billion from January 2, 2017 and shall include Rs 1,520 billion for all FPIs and an additional of Rs 680 billion for those investing for long term, it said.


The limits on State Development Loans (SDLs) are proposed to be increased in two tranches, each of Rs 35 billion, from October 3, 2016 and January 2, 2017 respectively, it said.


The limits of SDLs will go up to Rs 175 billion from the present Rs 140 billion starting October 3, and will be hiked to Rs 210 billion from January 2, 2017, it said.