The Reserve Bank of India (RBI) has doubled the sub-limit for investment in government securities, or G-Secs, to $10 billion by long-term investors like sovereign wealth funds and foreign central banks, with a view to attract more funds. Meanwhile, Sebi said in a circular, "Government of India has now decided to enhance this sub-limit from $5 billion to $10 billion within the overall government debt limit of $30 billion."
Foreign institutional investors - qualified foreign investors (QFIs) and long-term investors - registered with market watchdog Sebi are allowed to purchase government securities and non-convertible debentures (NCDs) or bonds issued by Indian companies within the limit of $30 billion.
FPIs bring together all the three investment categories - FIIs, their sub-accounts and QFIs. Under the new norms, FPIs have been divided into three categories as per their risk profile and the know-your-client (KYC) requirements and other registration procedures would be much simpler for FPIs compared to current practices.
Besides, the new class would be given a permanent registration, as against the current practice of granting approvals for one year or five years to the overseas entities seeking to invest in Indian markets.
Foreign institutional investors - qualified foreign investors (QFIs) and long-term investors - registered with market watchdog Sebi are allowed to purchase government securities and non-convertible debentures (NCDs) or bonds issued by Indian companies within the limit of $30 billion.
FPIs bring together all the three investment categories - FIIs, their sub-accounts and QFIs. Under the new norms, FPIs have been divided into three categories as per their risk profile and the know-your-client (KYC) requirements and other registration procedures would be much simpler for FPIs compared to current practices.
Besides, the new class would be given a permanent registration, as against the current practice of granting approvals for one year or five years to the overseas entities seeking to invest in Indian markets.