FIIs can now invest up to $15 billion in government securities (G-Secs) and $20 billion in corporate bonds. The investment limit in long-term infrastructure bonds, however, has been kept unchanged at $25 billion
New Delhi: The finance ministry today increased the investment limit for foreign institutional investors (FIIs) in government securities (G-Secs) and corporate bonds by $5 billion each, a move that will enhance capital flows and increase the availability of resources for Indian corporates, reports PTI.
FIIs can now invest up to $15 billion in government securities (G-Secs) and $20 billion in corporate bonds, official sources said.
The investment limit in long-term infrastructure bonds, however, has been kept unchanged at $25 billion.
A notification giving effect to the new FII investment ceilings will be issued by market regulator Securities and Exchange Board of India (SEBI) soon.
“The present enhancement will increase investment in debt securities and help in further development of the government securities and corporate bond markets in the country,” the official added.
The decision, which was taken after a review of the macro-economic situation, would enhance capital flows and make additional financial resources available to the Indian corporate sector, he said.
The official added that the increase in investment limits became necessary as “...little space was available for further FII investment in G-Secs and corporate bonds”.
As against the FII investment ceiling of Rs43,650 crore in G-Secs, foreign institutions had invested Rs41,253 crore as of 31 October 2011.
Similarly, in the case of corporate bonds, FIIs have invested Rs68,289 crore (as of 31 October 2011) as against the ceiling of Rs74,416 crore.
Offerings are provided through IBM India Pvt Ltd to qualified commercial and government customers
IBM launched interest-free credit for buying software products of the company to small and medium businesses in India till December 31.
Credit-qualified businesses can now avail this offer through IBM Global Financing, the company's lending and leasing organisation, it said in a statement. Offerings are provided through IBM India Pvt Ltd to qualified commercial and government customers.
The offer that requires minimum transaction size of $5,000 (Rs2,25,000), with availability based on customer's credit rating, financing terms is valid for all IBM software products including S&S and Services. "Other restrictions may apply", it said.
Said Sapan Jain, Vice President, IBM Global Financing, India/South Asia: "By providing financial resources, small companies will be able to innovate and grow faster."
IBM had announced earlier this year the availability of $1 billion in financing for SMBs globally.
"This initiative will enable mid-market companies to take advantage of advanced technologies such as business analytics, robust network security and cloud capabilities which have previously only been accessible to large enterprise customers," it said.
Jaiprakash Power Ventures revenues soared more than two-fold to Rs670.84 crore in the second quarter of current fiscal
Jaiprakash Power Ventures (JPVL) saw more than three-fold jump in profit after tax to Rs280.65 crore in the three months to September 2011.
The company, part of diversified Jaypee Group, had raked in a profit of Rs86.98 crore in the year-ago period, it said in a statement.
Revenues soared more than two-fold to Rs670.84 crore in the second quarter of current fiscal from Rs282.55 crore in the same period a year ago.
JPVL chairman Manoj Gaur said the company expects to have an operational capacity of 2,200 MW by the end of this fiscal. By 2019, the generation capacity--including hydro and thermal projects--is anticipated to be 13,470 MW.
The company's 1,000 MW Karcham-Wangtoo Hydroelectric Project has commenced commercial operation, taking the entity's total hydropower capacity to 1,700 MW.
"By the end of this financial year, the company aims to have 2,200 MW operational generation capacity, including the first phase of 500 MW thermal power of the 1,250 MW Bina thermal project in Madhya Pradesh," Gaur said.
According to him, the work on 1,320 MW (2x660 MW) Jaypee Nigrie Super Thermal Power Project in Nigrie, Madhya Pradesh is progressing satisfactorily and all major statutory approvals, required at the current stage of the project, have been obtained.
In the late afternoon, Jaiprakash Power was trading at around Rs34.70 per share on the Bombay Stock Exchange, 1.56% down from the previous close.