FPI Investment Limit in Government Securities Hiked

In a move that could temporarily soften bond yields, the Reserve Bank of India, in consultation with the Government, hiked the foreign portfolio investors (FPI) investment limit in Central government securities (G-Sec) from 5% of outstanding stock now to 5.5% in FY2019 and 6% in FY2020.

The hike comes in the wake of 99.31% of the upper FII investment limit in G-Secs of Rs1,91,300 crore getting utilised. The FPI investment in state development loans (SDLs) has been left unchanged at 2% of outstanding stock of securities.

Source- DD News