India may increase the limit on foreign institutional investors (FII) in government debt to USD 10 billion and in corporate debt to USD 20 billion, news channel CNBC-TV18 reported on Tuesday, citing an unnamed finance ministry source.
The channel said the official announcement of an increase in the FII investment limit in debt may come shortly. The current limit for all foreign investment in government securities is USD 5 billion and the limit for domestic corporate bonds is USD 15 billion.
A finance ministry source who did not wish to be named told Reuters that the investment limit in government securities had almost been fully utilised and there was a case for an increase in the limit for government securities.
"At the moment there is a case for hiking the FII limit in government securities," the source said without giving any further details.
