India has permitted qualified foreign investors (QFIs) to invest up to $13 billion in mutual funds (MFs) to reduce volatility and boost infrastructure spending, Mint reports. Out of the total, $10 billion will be invested in equity-based funds, while the rest is for debt funds in the infrastructure sector.
The permitted investment in infrastructure-based debt MFs, with a minimum residual maturity period of five years, will be allowed within the existing ceiling of $25 billion for FII investment in corporate bonds issued by infrastructure companies. The QFI limit for equity will be within the overall ceiling of $8 billion. The Securities and Exchange Board of India will auction the remaining limit of $2 billion in equity schemes and $0.5 billion in debt schemes through bidding process.
Click here for the story from Mint.
Click here for additional coverage from Hindustan Times.