India would attract more FIIs to boost Infrastructure!

Taking a step forward to develop the government securities and corporate bond markets, the government on Thursday increased the Foreign Institutional investor limit for government securities to $10 billion from $5 billion, for corporate bonds the FII limit has been increased to $20 billion from $15 billion.

In addition, the government has raised the FII cap in bonds floated by companies engaged in the infrastructure business, which will provide much-needed funds for the crucial sector.

According to the Finance minister this move would help the flow of FII fund into debt Markets. It is also believed that increased FIIS in Debt securities would help investment in the infrastructure sector and the development of government securities and corporate bonds markets.

Also Foreign institutional investors have poured about $18 billion (Rs 81,880 crore) in India in stocks so far this year, their highest investment in dollar terms in a calendar year.FIIs' net purchase were worth $17.89 billion in this year till Friday, according to data available on the Securities and Exchange Board of India website.

Source: NDTV/Rediff
Photo: Topnews.in

What are Foreign Institutional Investors – FIIs?

The term is used most commonly in India to refer to outside companies investing in the financial markets of India.

International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies.
What you must know about FIIs is that, owing to the much stable global markets, India has started experiencing robust inflows of FIIs recently.

Photo : Forum4finance

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