Investment sub-limit for foreign fund in govt papers hiked

The Reserve Bank today doubled the sub-limit for investment in government securities to USD 10 billion by long-term investors like sovereign wealth funds and foreign central banks, with a view to attract more funds.
"It has now been decided, in consultation with government to enhance, with immediate effect, the existing sub-limit of USD 5 billion available to long-term investors registered with SEBI-- SWFs, multilateral agencies, pension and foreign central banks for investment in government securities to USD 10 billion...," RBI said in a notification.
However, the total limit of USD 30 billion available for foreign investments in government securities has not been tinkered with.

Foreign institutional investors-- qualified foreign investors (QFIs) and long-term investors-- registered with SEBI are allowed to purchase government securities and non-convertible debentures (NCDs) or bonds issued by an Indian company within the limit of USD 30 billion.
The operational guidelines in this regard will be issued by SEBI, it said.