MANU/SIPM/0002/2016

Ministry : Securities and Exchange Board of India

Department/Board : Investment Management Department

Circular No. : IMD/FPIC/CIR/P/2016/45

Date : 29.03.2016

Notification/ Circulars Referred : Circular CIR/IMD/FPIC/8/2015 dated October 06, 2015 MANU/SFII/0003/2015;Circular CIR/IMD/FIIC/19/2014 dated October 09, 2014 MANU/SDEP/0031/2014

Citing Reference:
Circular CIR/IMD/FPIC/8/2015 dated October 06, 2015 MANU/SFII/0003/2015  Referred

Circular CIR/IMD/FIIC/19/2014 dated October 09, 2014 MANU/SDEP/0031/2014  Referred

To

All Foreign Portfolio Investors
through their designated Custodians of Securities
The Depositories (NSDL and CDSL)

Sir/Madam,

Investments by FPIs in Government securities

1. RBI in its Fourth Bi-monthly Policy Statement for the year 2015-16, dated September 29, 2015 had announced a Medium Term Framework (MTF) for FPI limits in Government securities in consultation with the Government of India. Accordingly, SEBI had issued circular CIR/IMD/FPIC/8/2015 dated October 06, 2015 regarding the allocation and monitoring of FPI debt investment limits in Government securities.

2. As announced in the MTF and in partial modification to Para 3 of the SEBI circular CIR/IMD/FPIC/8/2015 dated October 06, 2015, it has been decided to enhance the limit for investment by FPIs in Government Securities, for the next half year, as follows:

a. Limit for FPIs in Central Government securities shall be enhanced to INR 140,000 cr on April 04, 2016 and INR 144,000 cr on July 05, 2016 respectively from the existing limit of INR 135,400 cr.

b. Limit for Long Term FPIs (Sovereign Wealth Funds (SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks) in Central Government securities shall be enhanced to INR 50,000 cr and INR 56,000 cr on April 04, 2016 and July 05, 2016 respectively from the existing limit of INR 44,100 cr.

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