SEBI limits FIIs debt investment

Mumbai: The Securities and Exchange Board of India (SEBI) has clarified that the total investment limit by foreign institutional investors (FIIs) in debt in India will be limited to dollars 1 billion.

SEBI has confirmed that the dollars the 1billion limit is cumulative and not an annual figure. So far on a cumulative basis, net investments by FIIs in domestic debt amounts to Rs 3819.6 crore ($848.8 million), while in the current calendar year, the FIIs net investment in debt has been Rs 1482.6 crore ($329 million). In March alone, $202.5 million has been invested and in February it was at $10.1 million.

Last year, FIIs made gross purchases to the tune of $1.03 billion in the bond markets in India.

Foreign institutional investors investing in the Indian debt mart are primarily lured by the higher yileds, which they get here as opposed to their home countries. This yoled becomes become more attractive with the appreciation in the rupee.