FinMin mulls raising FII investment sub-limit in govt bonds
Jul 21 2014 , Mumbai
"There is general demand and there is a space to increase FII limit in government debt...No intent to increase overall $ 30 billion FII debt cap," Finance Secretary Arvind Mayaram said.
Currently, India allows FIIs of up to $ 30 billion in government bonds, including $ 20 billion for all and $ 10 billion for specific investors like foreign central banks, sovereign wealth funds, pension funds and insurance funds.
The limit under $ 20 billion has been almost fully exhausted.
"There is demand and space for rejigging existing FII debt window, we may use $ 5 billion unutilised sovereign wealth funds (SWF) as part of FII debt cap," Mayaram said.