The Reserve Bank of India on Monday announced a slew of measures with immediate effect to curb the slide in the Indian rupee.
The central bank decided to raise the limit of external commercial borrowing or ECB for Indian companies in manufacturing and infrastructure sector for repayment of outstanding Rupee loans. "The overall ceiling for such ECBs would be $10 billion," the central bank said in a statement.
The maximum investment limit for Foreign Institutional Investors in government securities was lifted by $5 billion to $20 billion.
Also, the terms and conditions for the FII investment in infrastructure debt and non-resident investment in Infrastructure Development Funds have been further rationalized in terms of lock-in period and residual maturity.
Further, Qualified Foreign Investors can now invest in those mutual fund schemes that hold at least 25 percent of their assets in infrastructure sector under the current $3 billion sub-limit for investment in mutual funds related to infrastructure.
by RTT Staff Writer
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