Source: IBEF.org, Apr 03, 2017
New Delhi: The Reserve Bank of India (RBI) has raised the limit on investment in government bonds by foreign portfolio investors (FPI) by an aggregate Rs 170 billion (US$ 2.62 billion) during the April-June 2017 period. The investment limit in central government securities have been increased by Rs 110 billion (US$ 1.7 billion), which takes the total increase in the investment caps in g-secs by FPIs up to Rs 2,310 billion (US$ 35.63 billion) from Rs 2,200 billion (US$ 35.32 billion) earlier. The limit for State development loans have been raised by Rs 60 billion (US$ 925 million), thereby increasing the total limit to Rs 270 billion (US$ 4.16 billion) from the earlier Rs 210 billion (US$ 3.24 billion). The cap on general category has been increased to Rs 1,565 billion (US$ 24.14 billion) from Rs 1,520 billion (US$ 23.45 billion), whereas the limit for long term investors have been raised to Rs 745 billion (US$ 11.49 billion) from Rs 680 billion (US$ 10.49 billion) earlier.