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FPIs can buy corp debt limit worth Rs 9,500 cr in infra sector: Sebi

This sub-limit for long-term FPIs would be Rs 9,500 cr from Oct 3 and would be further enhanced to Rs 19,000 cr on Jan 1

Press Trust of India  |  New Delhi 

FPIs

Sovereign wealth funds and other long-term (FPIs) can buy up to Rs 9,500 crore worth corporate debt in infrastructure sector, regulator on Friday said.

This comes after RBI's decision to exclude foreign investment in rupee denominated bonds, popularly known as masala bonds, from the combined corporate debt Limit (CCDL).

This sub-limit for long-term FPIs for infrastructure sector would be Rs 9,500 crore from October 3 and would be further enhanced to Rs 19,000 crore on January 1, said in a circular.

The new limit will be within the overall corporate debt investment limits (CDIL), the Securities and Exchange Board of India (Sebi) said.

Sovereign wealth funds, multilateral agencies, insurance funds, pension funds and foreign central banks are long term FPIs.

The regulator said foreign investments in rupee denominated bonds would no longer be reckoned against the combined corporate debt limit from October 3.

Further, the would be renamed as the corporate debt investment limits for FPIs and the upper limit for corporate debt would be stated only in rupee terms.

Till September 22, foreign investments in rupee denominated bonds were Rs 32,381 crore, while the undrawn amount against such bonds was Rs 11,620 crore.

Thus, a total of Rs 44,001 crore has been reckoned against rupee denominated bonds within the combined corporate debt limit of Rs 2,44,323 crore, which would be carved out of erstwhile and will be added to the new limit of CDIL.
 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, September 29 2017. 17:38 IST
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