Corporate Updates – 10-10-2014


SEBI has issued Clarification on investment limit on Government Debt Investment Limits as available to all FPIs was enhanced to USD 30 billion. It was also stated in the aforesaid circular that all future investments in this USD 25 billion debt limit shall be required to be made in government bonds with a minimum residual maturity of three years. It is upon sale/redemption of debt securities, the FPI will have a re-investment period 5 days. If the reinvestment is not made within 5 working days, then the limits shall come back to the pool of free limits. Further, in order to provide operational flexibility to FPIs, it is clarified that there would be no other re-investment restrictions.


RBI has decided to reduce the eligible limit of ECR facility from the level of 32 per cent of the outstanding rupee export credit eligible for refinance as at the end of the second preceding fortnight to 15 per cent effective from October 10, 2014. Accordingly, part A of the reporting format is also modified.


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