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Securities Exchange Board of India (SEBI)

1. Change in Government Debt Investment Limits. The present debt investment limits available for Foreign Portfolio Investments (FPIs) in Government securities (G-Secs) include a USD 20 billion limit for all FPIs and another USD 10 billion limit for Long Term FPIs. While the USD 20 billion limit has been fully utilized, the USD 10 billion limit has been utilized only up to 22.86%. In partial modification to the earlier circular, SEBI has vide its circular CIR/IMD/FIIC/ 17/2014 dated  July 23, 2014 decided to enhance the investment limit in government securities available to all FPIs by USD 5 billion by correspondingly reducing the amount available to long term FPIs from USD 10 billion to USD 5 billion within the overall limit of USD 30 billion. The Government debt investment limit shall now be as follows:
Type of limit Cap(US$bn) Cap(INRCrore) Eligible Investors Remarks
Government Debt 25 124,432 FPIs Available on demand. The  incremental investment  limit of USD 5 billion (INR  24,886cr) shall be required  to be invested in  government bonds with a Minimum residual maturity of three years. Further, all future investment against the limit vacated when the current investment by an FII/QFI/FPI runs off either through sale or redemption shall also be required to be made in government bonds with a minimum residual maturity of three years.
  SEBI has clarified that those FPIs which had acquired debt limits in the auction held on July 22, 2014 may utilize the limit in terms of the SEBI circular CIR/IMD/FIIC/8/2014 dated April 07, 2014 i.e., the debt limits purchased in the said auction are grandfathered. 2. Dispatch of physical Statements to BOs having Zero Balance and Nil Transactions. SEBI has vide its circular  CIR/MRD/DP/ 21 /2014 dated July 1st, 2014 introduced the facility of Basic services Demat Account (BSDA) wherein inter alia it was mandated that one annual physical statement of holding shall be sent to the Beneficial Owners(BOs) having zero balance and Nil transaction.
Existing Clause Modified Clause
Clause 5(b)(i):   DP shall send atleast one annual physical statement of holding to the stated address of the BO in respect of accounts with no transaction and nil balance even after the account has remained in such state for one year. The DP shall inform the BO that the dispatch of the physical statement may be discontinued if the account continues to remain zero balance even after one year. Clause 6(a):   Accounts with zero balance and nil transactions during the year: DP shall send atleast one annual physical statement of holding to the stated address of the BO in respect of accounts with no transaction and nil balance even after the account has remained in such state for one year. The DP shall inform the BO that if no Annual Maintenance Charge (AMC) is received by the DP, the dispatch of the physical statement may be discontinued for the account which continues to remain zero balance even after one year.
  However, irrespective of the above, the DPs shall send electronic statement of holding to all the BOs whose email ids are registered with them. Also, if a BO requests for a physical statement, the DPs shall provide the same. For the purpose of valuation of holdings in an account, the value of suspended securities may not be considered for the purposes of determining eligibility of demat account as BSDA.  
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