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Capital Markets/ Securities
Certain important and recent legal developments and case laws in this area are set out below.
Qualified Foreign Investors (‘QFI’) Investment in Debt Mutual Fund Schemes which Invest in Infrastructure
In the past, the SEBI has allowed qualified foreign investors (‘QFI’)to invest in mutual fund debt schemes which invest in infrastructure debt upto a total ceiling of USD 3 billion out of the total long term corporate infrastructure limits of USD 25 billion. As a measure of relaxation, RBI has also relaxed investment restriction for QFI investment in debt mutual fund schemes which invest in infrastructure. Accordingly, QFIs can now invest in those debt mutual fund schemes that hold atleast 25 percent of their assets in the infrastructure sector under the investment limit of USD 3 billion. Further, QFI can invest without obtaining approval until the overall QFI investments reach 90 per cent (ninety percent) of USD 3 billion i.e. USD 2.7 billion.