October 09, 2014
All Foreign Portfolio Investors through their Designated Depository Participants
The Depositories (NSDL and CDSL)
Sir / Madam,
Sub: Clarification on Government Debt Investment Limits
1. SEBI had issued a circular CIR/IMD/FIIC/ 17/2014 dated July 23, 2014 whereby the investment limit in government securities available to all FPIs was enhanced by USD 5 billion by correspondingly reducing the amount available to long term FPIs from USD 10 billion to USD 5 billion within the overall limit of USD 30 billion. It was also stated in the aforesaid circular that all future investments in this USD 25 billion debt limit shall be required to be made in government bonds with a minimum residual maturity of three years.
2. It is clarified that all investments by Long Term FPIs (Sovereign Wealth Funds(SWFs), Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks) in the USD 5 billion Government debt limit shall continue to be made in Government bonds having a minimum residual maturity of 1 year.
Please refer the attached file for details