Sebi rationalises debt limits for foreign investors
PrintListen to this Article
Market regulator Sebi today announced rationalisation of debt limits for foreign institutional investors (FIIs) in line with RBI move on the same issue, a move that is expected to attract more overseas investments into the capital market.
Earlier in the day, the Reserve Bank had also come out with notification on rationalising FII investment in bonds.
The existing debt limits for FIIs would be merged into two board categories -- government securities of $ 25 billion and corporate bonds of $51 billion.
In a circular, Securities and Exchange Board of India (Sebi) said that government debt limits of $10 billion and $ 15 billion for long term ones would be merged into a single category having a limit of $ 25 billion equivalent to Rs 124,432 crore.
Meanwhile, the combined limit for corporate debt category would be $ 51 billion or Rs 244,323 crore.
According to Sebi, eligible FIIs and QFIs can invest in Treasury Bills only up to $ 5.5 billion, within the limit of $ 25 billion.
In the case of commercial papers, they can invest only up to $ 3.5 billion within the limit of $ 51 billion.
"On account of the room created by unifying the debt categories, the current Sebi auction mechanism of allocating debt limits for corporate bonds, shall be replaced by the 'on tap system' currently in place forinfrastructure bonds," the circular said.
Further, the current practice of "dissemination of fortnightly debt utilisation status shall be discontinued," the circular noted.
The monitoring of investments by FIIs and the dissemination of daily data would be done by the depositories.
Partially modifying the norms, FIIs can now invest in Corporate Debt without purchasing debt limits till the overall investment reaches 90 per cent. Once that level is reached, the auction mechanism would be initiated for allocation of the remaining limits, as currently in place for Corporate Debt Long Term Infrastructure bonds.
For those FIIs which had obtained Debt limits in the auctions held on February 20, 2013 and on March 20, 2013, the time period for utilisation of Corporate Debt limits allocated through the bidding process would be 60 days.
The status of utilisation of debt limits as on March 31, 2013 indicating the quantum of limits which are freely available for investments by FIIs and QFIs would be put on Sebi website. (PTI)
Category : International Business | Comments : 0 | Hits : 245
Chartered accountants from the UK and Canada might be allowed to practice in India on a reciprocal basis, with the apex body ICAI making the proposal to the Government. ICAI President Ranjeet Kumar Agarwal, on February 21, said the proposal will be implemented strictly on the reciprocal basis that chartered accountants (CAs) from India will also be allowed to practice in the United Kingdom and Canada. It will be the first time that overseas CAs will be allowed to practice in India. The pro...
The tax department is considering a proposal under which credit card holders will have to file a declaration with the issuer entity within a stipulated time, specifying the nature of expenses incurred in foreign currency for the purpose of TCS levy, sources said. The I-T department is in talks with the RBI and other stakeholders to firm up a mechanism for distinguishing whether the expense is towards medical/education which attract a 5 per cent TCS or for other purposes on which a 20 per cent...
Concerns have been raised about the applicability of Tax Collection at Source (TCS) to small transactions under the Liberalized Remittance Scheme (LRS) from July 1, 2023. To avoid any procedural ambiguity, it has been decided that any payments by an individual using their international Debit or Credit cards upto Rs 7 lakh per financial year will be excluded from the LRS limits and hence, will not attract any TCS. Existing beneficial TCS treatment for education and health payments will also co...
The ministry on May 16 notified the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023, to include international credit card payments in the LRS. Any remittance beyond USD 2.5 lakh or its equivalent in foreign currency would require approval from the RBI. Earlier, the usage of international credit cards (ICCs) for making payments for fulfilling expenses during travel outside India was not included in the LRS limit. According to the notification, the Finance ...
Canada’s immigration minister Sean Fraser has announced Express Entry invitations to FSWP and CEC candidates will resume by “early July 2022” The vast majority of new Express Entry applications will be processed within the six-month service standard. According to IRCC, current Express Entry processing times range from seven months to in excess of 20 months. Summary of Canada's Immigration Levels Plan Each year, the federal department of Immigration, Refugees ...
Comments