Mumbai: The Securities and Exchange Board of India (SEBI) would remove the upper limit for foreign institutional investors (FIIs) for investment in the bond market, SEBI chairman M Damodaran said.

"There is a limit on investment (by FIIs in the bond market). It may move away as we go forward," Damodaran told the Fortune Global Forum. "This (raising limits on FII investment) will happen over time. As markets grow, this will happen," he said.

Damodaran, however, did not give a timeframe for raising the limit. Currently, FII investments in the bond market are capped at $4 billion.

The SEBI chief also said the market regulator would put in place regulations on securitisation by the end of the current financial year.

He said the SEBI had already circulated a draft regulation on securitisation.