Reserve Bank eases rules for FII investment in debt

• The RBI enhanced the limit of investment by FIIs and long term investors in Government Securities by $5 billion from $20 billion to $25 billion.
• It also hiked the investment limit in corporate bonds by these entities by $5 billion, from $45 billion to $50 billion.
• The RBI also removed the maturity restriction on first time foreign investors on dated G-Secs.
  
  Earlier it was mandated that the first time foreign investors of G-Secs must buy securities with atleast 3 years residual maturity.
• The 5 year residual maturity on QFIs (Qualified Foreign Investors) within the $3 billion dollar limit has been modified to 3 years original maturity.

Courtesy: THE HINDU