FII debt buying crosses $17 bn

Sep 03 2014, 02:17 IST
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SummaryForeign institutional investors (FIIs) have bought bonds worth...

Foreign institutional investors (FIIs) have bought bonds worth $17.11 billion in 2014 so far, surpassing the earlier record of $10.05 billion in 2010. FIIs bought 98.48% of the available $25 billion in government bonds, as on September 1, according to data published by the National Securities Depository on Tuesday.

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Currently, R1,22,542 crore worth of government bonds has been purchased and only R1,890 crore remains under the $25-billion limit, according to the data. FIIs have also been buying corporate bonds. In July, the RBI increased the limit available for FIIs by $5 billion to $25 billion, but kept the overall limit intact by lowering the limits for long-term foreign investors such as sovereign wealth funds.

The central bank simultaneously raised the duration of investments for FIIs to a minimum residual maturity although it refrained from imposing any lock-in.

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