TMI BlogIncrease in FII debt limit for Government and Corporate Debt categoryX X X X Extracts X X X X X X X X Extracts X X X X ..... ow: a) In the Government Debt Long Term category, the provision regarding 3 years residual maturity at the time of first purchase shall no longer be applicable. However, within this category, FIIs shall not be allowed to invest in short term paper like treasury bills. b) In terms of the aforesaid circular, the limit of US$ 5 billion in the Corporate Non-Infrastructure Debt category shall not be available for investment in Certificate of Deposits (CD) and Commercial Papers (CP). Investments in Certificate of Deposits are not permitted within the limit of US$ 20 billion. c) The US $ 1 billion limit for QFIs shall continue to be over and above the revised limit of US$ 25 billion available for FII investment in Corporate non-infrastruc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporate Debt securities is as follows: Type of Instrument Cap (US$ bn) Restrictions S. No. Initial Maturity Residual Maturity Lock- in Investor Class Comments 1 Government Debt - Old 10 NA NA Nil FIIs 2 Government Debt - Long Term 15 NA NA Nil FIIs Investments in short term paper like treasury bills no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Abbreviations used : NA = Not Applicable ; bn = Billion 5. Allocation of Debt Limits a. The incremental limit in Government Debt Long Term category i.e US $ 5 billion (equivalent to approximately ₹ 26,925 cr converted at the RBI reference rate of US $ 1 = ₹ 53.8515 as on January 24, 2013) shall be auctioned along with the unutilized debt limits in that category as on January 31, 2013 (Rs.7034 cr), during the next auction scheduled to be held on February 20, 2013. Therefore, the total unutilized limit of ₹ 33,959 cr in the Government Debt Long Term category will be auctioned on February 20, 2013. b. The incremental Corporate non-infrastructure limit of US $ 5 billion (equivalent to approximately ..... X X X X Extracts X X X X X X X X Extracts X X X X
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