In an effort to increase overseas capital inflows to strengthen the rupee, the government has enhanced the limit for foreign investments in government securities by 5 billion US dollars with immediate effect. With the enhancement, the total limit of investments by foreign entities in government securities has increased from 25 billion US Dollars to 30 billion US Dollars. Capital market regulator SEBI said the government has increased the limit in a late evening circular yesterday. The circular said that the aforesaid enhanced limit of
5 billion US Dollars shall be available for investments only to those Foreign Institutional Investors who are registered with SEBI under the categories of Sovereign Wealth Funds, Multilateral Agencies, Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks.
Bouncing back from its record lows, the rupee yesterday gained 60 paise to close at 57 rupees 79 paise against the dollar as rating agency Fitch revised India's credit outlook to stable.