Sebi hikes FPI investment limit for govt debt

New Delhi: Regulator Sebi today raised the FPI investment limit in central government securities to Rs 1,87,700 crore to boost inflow of foreign funds into Indian capital markets.

Earlier, the limit for foreign portfolio investors (FPIs) was about Rs 1.85 lakh crore. The move is part of Sebi's effort to enhance inflow from overseas investors in the country's capital markets.

"Limit for FPIs in Central Government securities shall be enhanced to Rs 1,87,700 crore," Securities and Exchange Board of India (Sebi) said in a circular, adding that the new limits came into effect today.

It also revised the limit for investment by long-term FPIs (sovereign wealth funds, insurance funds, pension funds and foreign central banks) in government securities to Rs 54,300 crore from Rs 46,099 crore.

Besides, the new limit for investment by all FPIs in state development loans (SDL) General is Rs 28,500 crore, while that for SDL-long-term is Rs 4,600 crore.

The move is in line with RBI revising the limit for investment by FPIs in government securities for the July- September quarter.