FIIs can't buy G-secs with maturity of less than 1 year: Sebi

Tags: News
Capital market regulator Sebi today restricted foreign investors from buying government securities having maturity of less than one year, a move that aims at encouraging inflows of long-term overseas fund.

"FIIs (Foreign Institutional Investors)/QFIs (Qualified Foreign Investors) shall henceforth be permitted to invest only in dated government securities having residual maturity of one year or above," Sebi said in a circular.

Securities and Exchange Board of India added that the "existing FII/QFI investments in Treasury Bills shall be allowed to taper off on maturity/sale".

The regulator also said that "the purchases in Treasury Bills shall be permitted" and "the investment limits vacated at the shorter end would be available at longer maturities".

However, the overall limit for FII/QFI investments in government securities would remain unchanged at $ 30 billion, it said.

The circular by Sebi has been issued pursuant to the announcements made in the first bi-monthly monetary policy statement, 2014-15 on April 1, 2014 by the Reserve Bank.

RBI has been rationalising and expanding limits for foreign investments in debt markets.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • But what’s the big deal about Modi’s first hundred days?

    That Indians believe more in symbolism than substance is a fact that is well acknowledged and chronicled.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

West Asia turmoil worries east Asia

From Beijing to Jakarta, from Manila to Tokyo, east Asian ...

Parvez Imam

Sowing the seeds of love for hatred

No wonder we have a whole lot of talking going ...

Dharmendra Khandal

Time to protect our endangered wildlife species

After 65 million years of existence, the earth’s biodiversity is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture