New Delhi: Government is considering hiking the FII investment sub-limit in its bonds to USD 25 billion without disturbing overall USD 30 billion FII debt cap, a top finance ministry official said Monday.
"There is general demand and there is a space to increase FII limit in government debt...No intent to increase overall USD 30 billion FII debt cap," Finance Secretary Arvind Mayaram said.
Currently, India allows FIIs of up to USD 30 billion in government bonds, including USD 20 billion for all and USD 10 billion for specific investors like foreign central banks, sovereign wealth funds, pension funds and insurance funds.
The limit under USD 20 billion has been almost fully exhausted.
"There is demand and space for rejigging existing FII debt window, we may use USD 5 billion unutilised sovereign wealth funds (SWF) as part of FII debt cap," Mayaram said.
