To encourage greater participation by foreign institutional investors (FIIs), regulator Securities and Exchange Board of India (SEBI) has reduced the minimum bid amount to Rs.1 crore for allocation of investments in long-term infrastructure corporate debt for such investors.
The regulator will hold a bidding on February 29 for allocation of unutilised limit and has amended the rules by reducing the minimum bid amount to Rs.1 crore from Rs.250 crore and the maximum to Rs.1,000 crore from the existing Rs.10,000 crore.
“Based on the assessment of the utilisation of the limits to FIIs for investments in corporate debt long-term infra category (with one year lock in and one year residual maturity clause), it has been decided to allocate the unutilised limits. The bidding of this limit will be done on the National Stock Exchange on February 29,” SEBI said in a circular.
It further said that in partial amendment to its guidelines of 2009, “the minimum amount which can be bid for will be Rs.1 crore.”
As per the 2009 guidelines, the minimum amount which can be bid for was Rs.250 crore and the minimum tick size was fixed at Rs.100 crore.
SEBI also said that no single entity would be allocated more than Rs.1,000 crore of the investment limit.
