Sebi hikes FPI investment limit for govt debt

To boost inflows of foreign funds into Indian capital markets, regulator Sebi raised the FPI investment limit in central government securities to Rs 1.85 lakh crore.

Earlier, the limit for foreign portfolio investors (FPIs) was Rs 1.52 lakh crore. "Limit for FPIs in central government securities shall be enhanced to Rs 1,84,901 crore," Securities and Exchange Board of India (Sebi) said in a circular, adding that the new limits became effective.

It also decided to revise the limit for investment by long-term FPIs (sovereign wealth funds, insurance funds, pension funds and foreign central banks) in government securities to Rs 46,099 crore, from Rs 68,000 crore.

Besides, limit for investment by all FPIs in state development loans (SDL) increased to Rs 27,000 crore, from the previous Rs 21,000 crore.

The move is in line with RBI revising the limit for investment by FPIs in government securities for the April-June 2017 quarter.