Infra bonds: norms for FII investment eased | india | Hindustan Times
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Infra bonds: norms for FII investment eased

india Updated: Sep 12, 2011 21:22 IST
HT Correspondent

Concerned over the tepid response of foreign institutional investors (FIIs) towards infrastructure bonds, the government on Monday relaxed FII investment norms for the infrastructure sector.

Last month, the government had allowed qualified foreign investors (QFIs) to subscribe to mutual fund debt schemes investing in infrastructure, subject to a ceiling of $3 billion (Rs 13,500 crore) within the existing ceiling of $25 billion (Rs 1,12,500 crore).

It has been decided to carve out $5 billion (Rs 22,500 crore), out of remaining $22 billion (Rs 99,000 crore) for FII investments.

Subject to a lock-in period of one year, FIIs can invest in bonds, which have an initial maturity of five years or more at the time of issue and residual maturity of one year at the time of first purchase.