2. The limits for investment by FPIs in Central Government Securities and State Development Loans (SDLs) for the quarter April-June 2017 are proposed to be increased by Rs. 110 billion and Rs. 60 billion respectively.
3. The total increase in limits over the next quarter would, accordingly, be as under:
Central Government securities
State Development Loans
For all FPIs- General Category
Additional for Long Term FPIs
For all FPIs (including Long Term FPIs)
Revised limits for quarter April-June, 2017
The revised limits will be effective from April 1, 2017.
5. The limits for the long term investors remaining unutilized at the end of March 2017 will be released for investment under the general category in April 2017.
6. All other existing conditions, including the security-wise limits, investment of coupons being permitted outside the limits and investments being restricted to securities with a minimum residual maturity of three years, will continue to apply.
7. The operational guidelines relating to allocation and monitoring of limits will be issued by the Securities and Exchange Board of India (SEBI).
8. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
9. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approval, if any, required under any other law.