FPIs to get separate Rs 5,000 crore IRF window
PTI|
Updated: Mar 09, 2018, 08.27 AM IST
Currently, the foreign portfolio investor (FPI) limit for government securities is fungible between investments in securities and investment in bond futures.
NEW DELHI: In order to attract more foreign funds, markets regulator Sebi today decided to allocate a separate limit of ₹5,000 crore to FPIs for taking long position in Interest Rate Futures (IRFs).
Currently, the foreign portfolio investor (FPI) limit for government securities is fungible between investments in securities and investment in bond futures.
The decision comes after Reserve Bank in August had proposed to institute a separate limit of Rs 5,000 crore for investment by FPIs in IRF.
The move is aimed at facilitating further market development and ensuring that FPIs’ access to bond futures remains uninterrupted during the phase when FPI limits on government securities are under auction.
“Accordingly, it has been decided to allocate a separate limit of Rs 5,000 crore to FPIs for taking long position in IRFs,” the Securities and Exchange Board of India (Sebi) said in a circular.
Currently, the foreign portfolio investor (FPI) limit for government securities is fungible between investments in securities and investment in bond futures.
The decision comes after Reserve Bank in August had proposed to institute a separate limit of Rs 5,000 crore for investment by FPIs in IRF.
The move is aimed at facilitating further market development and ensuring that FPIs’ access to bond futures remains uninterrupted during the phase when FPI limits on government securities are under auction.
“Accordingly, it has been decided to allocate a separate limit of Rs 5,000 crore to FPIs for taking long position in IRFs,” the Securities and Exchange Board of India (Sebi) said in a circular.
