Sebi lets QFIs to invest $1 b in MF debts, corp bonds

Sebi lets QFIs to invest $1 b in MF debts, corp bonds

 To increase fund flow in the bond market, market regulator Sebi issued guidelines allowing overseas individual investors to invest up to US$1 billion in corporate bonds and debt schemes of mutual funds without any lock-in period.

QFIs or overseas individual investors are permitted to invest in corporate debt securities without any lock-in or residual maturity clause and mutual fund debt schemes subject to a total overall ceiling of US$1 billion, it said.

This limit shall be over and  above the limit of US$20 billion for FII investment in corporate debt. QFI can invest without obtaining prior approval until the aggregate QFI investments reaches 90 per cent of US$1 billion. For fresh purchases by QFIs after this cap, Sebi said, prior approval of the depositories is required to be obtained.

QFI must request for prior approval to the concerned depository  specifying the name of the QFI, PAN and unique identification number.

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