Securities and Exchange Board of India (Sebi) has asked depositories to monitor FII investments in credit enhanced bonds to ensure the 90% threshold of $5 billion limit isn't breached.
In September, government had allowed FIIs to invest in 'credit enchanced rupee bonds' up to $5 billion within the overall corporate bond limit of $51 billion.
"When the aggregate investments of all the FIIs/QFIs reaches 90% of the investment limit, notice informing the same shall be published by the depositories on their websites and no fresh purchases shall be allowed without prior approval of the depositories," Sebi said in a circular