Sebi removes cap on debt-equity investment ratio for FIIs



Mumbai, Oct 16 (PTI) With the foreign institutional investors...
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Zee News Oct 16, 2008 Sebi Removes Cap On Debt Equity Investment Ratio For FIIs

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"It will have a two-way positive impact. This will enable FIIs to invest without any obligation and will also enable Indian companies to get more funds for their expansion plans", said Jagannadham Thunuguntla, equity head Nexgen Capital.

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Zee News Oct 16, 2008 Sebi Removes Cap On Debt Equity Investment Ratio For FIIs

  1. 1. Sebi removes cap on debt-equity investment ratio for FIIs Mumbai, Oct 16 (PTI) With the foreign institutional investors pulling out of stock market, SEBI today removed the conditions limiting FIIs' allocation of funds between debt and equity, a decision that will provide greater flexibility and investment options to overseas investors. quot;It has been decided to do away with the conditions provided in ...FII regulations pertaining to restrictions of 70:30 ratio of investment in equity and debt respectively, with immediate effect,quot; the market regulator said in a circular here. The relaxation, according to SEBI, is aimed at according quot;greater flexibility to the FIIs to allocate investments across equity and debtquot;. quot;It will have a two-way positive impact. This will enable FIIs to invest without any obligation and will also enable Indian companies to get more funds for their expansion plansquot;, said Jagannadham Thunuguntla, equity head Nexgen Capital. The move comes a day after government doubled the limit of FII investment in corporate debts to USD 6 billion. Finance Minister P Chidambaram yesterday said quot;Sebi had informed me that it would address any request for relaxation in the proportion of investment in equity and debt required to be maintained by an FII under current regulations.quot;

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