RBI announces steps to revive rupeeJune 25th, 2012 - 4:16 pm ICT by IANS
Mumbai, June 25 (IANS) The Reserve Bank of India (RBI) Monday announced a series of measures, including raising limits for external commercial borrowings and government securities, that would help revive the battered currency and the economy.
The Reserve Bank of India said in a statement that it has taken measures in consultation with the government to liberalise capital account transactions.
It has been decided to allow Indian companies in the manufacturing and infrastructure sector and earning foreign exchange to avail of external commercial borrowing (ECB) for repayment of outstanding rupee loans towards capital expenditure and/or fresh Rupee capital expenditure under the approval route, the RBI said.
“The overall ceiling for such ECBs would be $10 billion,” the central bank said.
The existing limit for investment by Securities and Exchange Board of India (SEBI) registered foreign institutional investors (FIIs) in government securities (G-Secs) has been enhanced by a further amount of $5 billion.
This would take the overall limit for FII investment in G-Secs from $15 billion to $20 billion.
“In order to broad base the non-resident investor base for G-Secs, it has also been decided to allow long term investors like Sovereign Wealth Funds (SWFs), multilateral agencies, endowment funds, insurance funds, pension funds and foreign central banks to be registered with SEBI, to also invest in G-Secs for the entire limit of $20 billion,” the RBI said.
The sub-limit of $10 billion (existing $5 billion with residual maturity of 5 years and additional limit of $5 billion) would have the residual maturity of three years.
- India raises overseas investment limit in government, corporate bonds (Lead) - Jun 25, 2012
- India raises overseas investment limit in government bonds (Roundup) - Jun 25, 2012
- FII investment limit in corporate bonds raised to $25 billion - Sep 12, 2011
- FII investment cap in infrastructure raised - Feb 28, 2011
- Foreign Direct Investment in India to be more user friendly - Feb 28, 2011
- RBI to notify proposal allowing airlines to access foreign funds - Apr 19, 2012
- India allows foreigners to invest in domestic mutual funds - Aug 09, 2011
- 'Qualified foreign investors can directly invest in equity markets' - Jan 01, 2012
- RBI measures fail to cheer market, Sensex slips 90 points (Roundup) - Jun 25, 2012
- FII investment raised in government and corporate securities - Sep 23, 2010
- India raises FII investment limits in bonds by $5 bn - Nov 17, 2011
- Bullish foreign investors pump in over $5.5 bn into Indian markets - Feb 26, 2012
- Foreign funds pump in over $1.16 bn till Jan 20 - Jan 22, 2012
- India's forex reserves grow by $1.36 bn - Jul 07, 2012
- Overseas funds bought Indian stocks worth $282 mn during week - Jul 31, 2011
Tags: account transactions, bank of india, capital expenditure, central banks, ecbs, endowment funds, exchange board, external commercial borrowings, foreign institutional investors, government securities, infrastructure sector, insurance funds, investor base, multilateral agencies, reserve bank of india, resident investor, rupee loans, sebi, securities and exchange board of india, term investors