Sebi fixes Rs 2.44 lakh cr as combined debt limit for FPIs

Security and Exchange Board of India (Sebi) on Thursday fixed Rs 2,44,323 crore as the combined corporate debt limit for all foreign investments in rupee denominated bonds for foreign portfolio investments (FPIs).

This includes bonds issued both onshore and overseas by Indian corporates, Sebi said in a circular.

However, these investments would not be treated as FPI investments and would not come under the purview of Sebi (Foreign Portfolio Investors) Regulations.

This circular would come into effect immediately, the regulator said.

The Reserve Bank of India (RBI) in September 2015 allowed Indian corporates to issue rupee denominated bonds overseas within the ceiling of FPI investments in corporate debt.

Sebi has asked depositories — National Securities Depository Limited and Central Depository Services Limited — to put in place the necessary systems for receiving data on foreign investments in overseas rupee denominated bonds from the RBI on a periodic basis.