RBI hikes FPI caps in G-secs by Rs 11,200 cr to Rs 3.015 trillion

Mumbai: The Reserve Bank on Tuesday revised upwards the foreign portfolio investors' (FPIs) holdings limits in government securities by an aggregate of Rs 11,200 crore to Rs 3,01,500 crore for this financial year.

Under the revised norms, which are applicable for the March quarter, FPIs will be able to invest up to Rs 2,56,400 crore in Central government securities, up from Rs  2,50,000 crore earlier, the RBI said.

They will also be able to invest Rs 45,100 crore in state development loans (SDLs) as against Rs 39,3 00 crore earlier, the central bank said.

In Central government securities, the limits under the general category have been increased to Rs 1,91,300 crore from the earlier Rs 1,89,700 crore, while the same under the long- term category have been raised to Rs 65,100 crore from the earlier Rs 60,300 crore, it said.

In SDLs, the general category limits for FPIs now stand revised at Rs 31,500 crore from Rs 30,000 crore earlier, while the long-term ones have been set at Rs 13,600 crore from the earlier Rs 9,300 crore, it said.

The central bank said operational guidelines relating to allocation and monitoring of limits will be issued by the Securities and Exchange Board.