Fin Min increases FII limit

The Union Ministry of Finance has decided to increase the current limit of Foreign Institutional Investors' (FIIs) investments in government securities by $5 billion raising the cap to $15 billion. The incremental limit of $5 billion can be invested in securities without any residual maturity criterion. Besides it, the government has also decided to increase the investment of FIIs' investments in corporate bonds by $5 billion raising the cap to $20 billion. The incremental limit of $5 billion can be invested in listed corporate bonds. As on 31 October 2011, against a ceiling of Rs 43,650 crore in government securities, FIIs have invested Rs 41,253 crore.