Markets regulator Securities and Exchange Board of India (SEBI) withdrew the.....limit on investments by Foreign Portfolio Investors in corporate bonds of an entity.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Markets regulator Securities and Exchange Board of India (SEBI) withdrew the____limit on investments by Foreign Portfolio Investors in corporate bonds of an entity.

A	45%
B	30%
C	20%
D	35%

Explanation:

Detailed explanation-1: -According to the guidelines of SEBI, the overall overseas investment in the mutual fund industry is collectively restricted to up to US$7 billion. Each mutual fund house is permitted to have a maximum foreign investment exposure of up to US$1 billion.

Detailed explanation-2: -AIFs are permitted to invest up to 25% of their investible funds overseas, subject to the overall limit permitted by SEBI. Therefore, it should be interpreted that the quantum of 25% of the investible funds will be calculated on an ongoing basis by the Fund.

Detailed explanation-3: -As per Regulation 2(h) of SEBI FPI Regulations, a ‘foreign portfolio investor’ means a person who satisfies the eligibility criteria prescribed under regulation 4 and has been registered under Chapter II of FPI regulations and shall be deemed to be an intermediary in terms of the provisions of SEBI Act.

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