Government is considering hiking the FII investment sub limit in its
bonds to $25 billion without disturbing overall $30 billion FII debt
cap, a top finance ministry official said on Monday. “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 as part of FII debt cap,“ Mayaram said.
Source: ET
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 as part of FII debt cap,“ Mayaram said.
Source: ET