Sebi moves on FII investment in asset reconstruction companies

Effective immediately, move in line with previous govt circular

The Securities and Exchange Board of India has said that Foreign Institutional Investors' purchase of Security Receipts issued by Asset Reconstruction Companies should be in line with existing corporate debt limits. Security receipts are instruments backed by non-performing assets held by the asset reconstruction company.

The move is in line with a previous government circular, according to a Sebi note released on Tuesday. It is effective immediately.