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