RBI/2013-14/473
A.P. (DIR Series) Circular No.99
January 29, 2014
To,
All Authorised Persons
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), SEBI registered
Qualified Foreign Investors (QFIs) and long term investors registered with SEBI
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.111 dated June 12, 2013 in terms of which the present limit for
investments by FIIs, QFIs and long term investors in Government securities
stands at USD 30 billion, out of which a sub-limit of USD 5 billion is available
for investment by long term investors in Government dated securities.
- On a review, it has now been decided, in consultation with Government of
India to enhance, with immediate effect, the existing sub-limit of USD 5 billion
available to long term investors registered with SEBI – Sovereign Wealth Funds
(SWFs), Multilateral Agencies, Pension/ Insurance/ Endowment Funds and Foreign
Central Banks for investment in Government dated securities to USD 10 billion,
within the total limit of USD 30 billion available for foreign investments in
Government securities.
- 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