Foreign Investments in Infrastructure Debt Funds

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..... vest in securities other than shares or convertible debentures, subject to such terms and conditions mentioned therein and limits as prescribed for the same by the Reserve Bank and the Securities and Exchange Board of India (SEBI) from time to time. Attention of Authorised Dealers Category I (AD Category - I) banks is also invited to AP (DIR Series) Circular No.8 dated August 9, 2011 and AP (DIR Series) Circular No.42 dated November 3, 2011 in terms of which Qualified Foreign Investors (QFIs as defined therein to mean non-resident investors, other than SEBI registered FIIs and SEBI registered FVCIs, who meet the KYC requirements of SEBI) are allowed to invest in units of domestic Mutual Funds. 2. It has now been decided to allow i .....

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..... Eligible non-resident investor Eligible instruments (i) SEBI registered eligible non- resident investors in IDFs (as per 3 (a) above) Foreign Currency and Rupee denominated bonds and rupee denominated units issued by IDFs (ii) SEBI registered FIIs who qualify as (i) above Foreign Currency and Rupee denominated bonds and rupee denominated units issued by IDFs (iii) SEBI registered FIIs who do not qualify as (i) above Rupee denominated bonds and units issued by IDFs (iv) NRIs Rupee denominated bonds and units issued by IDFs (v) HNIs (as per 3(d)) Foreign Currency and Rupee denominated bonds and rupee denomin .....

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..... IDFs set up as NBFCs may invest in debt securities of only Public Private Partnership (PPP) infrastructure projects which have a buyout guarantee and have completed at least one year of commercial operations. Refinance by IDF would be up to 85% of the total debt covered by the concession agreement. IDFs set up as MFs would invest minimum of 90% of its funds in debt securities of infrastructure companies or SPVs across all infrastructure sectors, project stages and project types. (where infrastructure is defined in terms of the extant ECB guidelines) (b) Foreign exchange hedging The facility of foreign exchange hedging would be available to the eligible non-resident IDF investors, IDFs as well as the infrastructure project compa .....

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