Reserve bank of India
A.P. (DIR Series) Circular No.111
June 12 , 2013
To
All Category – I Authorised Dealer Banks
Madam / Sir,
Foreign investment in India by SEBI registered
Long term investors in Government dated Securities
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to
Schedule 5 to the Foreign Exchange Management (Transfer or Issue of Security by
a Person Resident outside India) Regulations, 2000 notified vide
Notification No. FEMA 20/2000 -RB dated May 3,
2000, as amended from time to time, in terms of
which SEBI registered Foreign Institutional Investors (FIIs) and long term
investors may purchase, on repatriation basis Government securities and
non-convertible debentures (NCDs) / bonds issued by an Indian company subject to
such terms and conditions as mentioned therein and limits as prescribed for the
same by RBI and SEBI from time to time.
- Attention of AD Category-I banks is also invited to
A.P.(DIR Series)
Circular No.94 dated April 1, 2013 in terms of whichthe present limit for
investments by FIIs, QFIs and long term investors in Government securities
and for corporate debt stood at USD 25 billion and USD 51 billion
respectively.
- On a review, it has now been decided in consultation with Government of
India to enhance the limit for foreign investment in Government dated
securities with USD 5 billion to USD 30 billion with immediate effect. The
enhanced limit of USD 5 billion will be available only for investments in
Government dated securities by long term investors registered with SEBI –
Sovereign Wealth Funds (SWFs), Multilateral Agencies, Pension/ Insurance/
Endowment Funds, Foreign Central Banks.
- The operational guidelines in this regard will be issued by SEBI.
- All other existing conditions for investment in Government securities
remain unchanged.
- AD Category – I banks may bring the contents of this circular to the
notice of their constituents and customers concerned.
- The directions contained in this circular have been issued under sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999)
and are without prejudice to permissions / approvals, if any, required under
any other law.
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager-in-Charge
RBI/2012-13/530