The CP sub-limit of USD 3.5 billion reduced to USD 2 billion for investment by SEBI registered FII, QFI and long term investors in Corporate Debt

The limit for investment by SEBI registered FIIs, QFIs and long term investors in Corporate debt stood at USD 51 billion. Out of the above limit of USD 51 billion, a sub-limit of USD 3.5 billion was available for investment by eligible investors in Commercial Paper (CP). However, this sub-limit was being utilised only to the extent of around 58% of the limit put in place by SEBI. Thus, to encourage long term investors, it has been decided, to reduce, with immediate effect, the existing Commercial Paper sub-limit of USD 3.5 billion by USD 1.5 billion to USD 2 billion. The balance USD 1.5 billion shall, however, continue to be part of the total Corporate debt limit of USD 51 billion and will be available to eligible foreign investors for investment in Corporate debt.

The revised position is:

Instruments Limit Eligible Investors RemarksCorporate Debt including Commercial Papers USD 51 Billion FIIs, QFIs and Long terms investors registered with SEBI - Sovereign Wealth Funds (SWFs), Multilateral Agencies, Pension/ Insurance/ Endowment Funds, Foreign Central Banks. Eligible Investors may invest in Commercial Papers only upto USD 2 billion within the limit of USD 51 billion.

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