Govt ups FII limit in bonds, gilts by $5 bn | business | Hindustan Times
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Govt ups FII limit in bonds, gilts by $5 bn

The government on Thursday raised the investment limit for foreign institutional investors (FIIs) in corporate bonds and government securities by $5 billion each (Rs 25,000 crore) widening the window for Indian firms to raise foreign capital at a time of high domestic interest rates. HT reports.

business Updated: Nov 18, 2011 01:08 IST
HT Correspondent

The government on Thursday raised the investment limit for foreign institutional investors (FIIs) in corporate bonds and government securities by $5 billion each (Rs 25,000 crore) widening the window for Indian firms to raise foreign capital at a time of high domestic interest rates.

FIIs can now invest up to $15 billion (Rs 75,000 crore) in government securities (G-secs) and $20 billion (Rs 1,00,000 crore) in corporate bonds, an official statement said. The government has been monitoring FIIs investments in the above mentioned debt instruments.

“The policy has been reviewed in the context of India’s evolving macroeconomic situation, the need for enhancing capital flows and making available additional financial resources for India’s corporate sector,” the statement said.