Date:07/08/2008 URL: http://www.thehindubusinessline.com/2008/08/07/stories/2008080751921500.htm

Back SEBI allots debt limits to more FIIs

Our Bureau

Mumbai, Aug. 6 SEBI has allocated the unutilised limits for investment in G-Secs and corporate debt to foreign institutional investors in the waitlist for such investments. Some of the allotted entities are: ING Bank N V, Citigroup Global Markets Mauritius, UBS AG, Merrill Lynch Mortgage Lending Inc, Barclays Merchant Bank (Singapore) and ABN Amro Asia Pacific Pte.

There are limits on debt investments by FIIs. Recently the Government increased the cumulative debt investment limits by FIIs from $3.2 billion to $5 billion; and from $1.5 billion to $3 billion for FIIS investments in the Government securities and corporate debt, respectively.

Each registered FII has a cumulative investment ceiling of $200 million in the Government securities and corporate bonds. Debt limits are allocated by SEBI to individual FIIs on a first-come-first-served basis in June. “In case the allocated limits are not utilised by the entities by August 15, the same shall be withdrawn and allocated to the entities lower down in the list of requests received by the regulator,” said a SEBI circular.