FII exposure in corporate bonds, gilts increased

In a circular issued, Sebi says incremental limit in both securities and bonds with residual maturity is for five years, while in case of corporate bonds, it should be specific to companies in the infrastructure sector. 

The unutilised limit from past allocations should also be allocated to market participants through bidding process and first come first served process.

Custodians will have to confirm compliance that their clients investments are in bonds issued for instructure companies and have residual maturity of more than 5 years in their report to Sebi.