Mumbai, June 6: The Securities and Exchange Board of India (Sebi) has fixed the ceiling of a foreign institutional investor’s (FII) investment in debt at $200 million in India. The government had last month raised the cumulative limit for FII investment in corporate bonds to $3 billion from $1.5 billion and government securities to $5 billion from $3.2 billion.

“The enhanced limits will be allocated among the FIIs on a first come first served basis, subject to a ceiling of $200 million per registered entity,” it said in a statement. The decision to raise the FII limit for debt investment was taken by the government along with relaxing of curbs on external commercial borrowings. The government had allowed infrastructure companies to remit $100 million raised in debt overseas to India for rupee expenditure from $20 million earlier. Other companies can now bring back $50 million to India for the rupee expenditure.