CIRCULAR
CIR/IMD/FIIC/15/2011 August 26, 2011
To
All Foreign Institutional Investors
through their designated Custodians of Securities
Dear Sir/Madam
Sub: Infrastructure Finance Companies (IFCs) -- as eligible issuers for FIIs
investment limit in debt instrument for infrastructure
1. Please refer to SEBI circular dated November 26, 2010 & March 31, 2011, regarding
FII investment in the corporate bonds issued by Indian companies which are in the
infrastructure sector, where 'infrastructure' is defined in terms of the extant guidelines
on External Commercial Borrowings (ECB).
2. In partial amendment to para 3 of circular dated November 26, 2010 and para 4 of
circular dated March 31, 2011 it has been decided that Non-Banking Financial
Companies (NBFCs) categorized as Infrastructure Finance Companies (IFCs) by the
Reserve Bank of India (RBI) shall also now be considered eligible issuers for the
purposes of FII Investment under the corporate debt long term infra category.
3. This circular is issued in exercise of the powers conferred under Section 11 (1) of the
Securities and Exchange Board of India Act 1992, read with Section 10 of the
Securities Contracts (Regulation) Act, 1956 to protect the interests of investors in
securities and to promote the development of, and to regulate the securities market.
4. A copy of this circular is available at the web page “F.I.I.” on our website
www.sebi.gov.in. The custodians are requested to bring the contents of this circular to
the notice of their FII clients.
Jeevan Sonparote
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