Sebi has said foreign investors will be permitted to utilise the debt limits allocated to them during monthly auction till “the 17th day of the succeeding month.” Earlier, FIIs purchasing debt limits in the auction (that Sebi conducts on the 20th of every month) had time till 19th of next month to utilize the debt limits. The move is to ensure that utilized limits are auctioned during the same month.

"The limits not utilised by FIIs as on the 19th are added back to the pool of free limits. Since the date of expiry of the utilisation period for debt limits (19th) exceeds the cut off date for the free limit to be auctioned (18th), by one day, the unutilised limits being freed up on the 19th are auctioned in the subsequent month and not in the same month. On account of this, free limits remain unavailable for investors for two months,"Sebi said in a circular. (Business Standard)