Govt securities: FinMin not to up FII cap

Finance ministry on Thursday ruled out any increase in the investment limit by foreign institutional investors in the government securities. 

"We are not looking at increasing FII (investment) limit in government securities," Department of Economic Affairs
Secretary Ashok Chawla told reporters.

He further said that as only 65 per cent of FII investment cap of $5 billion in government securities has been exhausted so far, there is no case for reviewing the limit.

Earlier in June, the government raised the FII investment limit in government securities to $5 billion from $3.2 billion.

Although the government has not hiked the investment limit in government securities, it has recently increased the FII investment cap in corporate debt to $6 billion from $3 billion to encourage flow of foreign investment.