NSE asks foreign investors not to raise long positions in bond futures

Written by Reuters | Mumbai | Updated: Jun 10 2014, 20:55pm hrs
NSENSE said in the circular that foreign institutional investors can invest in bond futures only after their holdings in cash and futures comes below 85 pct of permissible limits. Reuters
National Stock Exchange advised foreign investors on Tuesday to not increase their long positions in bond futures as their overall holding in government debt had reached 92.82 percent of the allowed limit.

The country's biggest stock exchange also said in the circular that foreign institutional investors can invest in bond futures only after their holdings in cash and futures comes below 85 percent of permissible limits.

The total holding limit for foreign investors is $30 billion, of which $10 billion is allocated to investors like foreign central banks, sovereign wealth funds, insurance funds and pension funds and the other $20 billion is open for all overseas investors.

Foreign investors have used up nearly their entire limit under the $20 billion category.