SEBI, on August 4, 2016, had redefined the corporate debt limit of Rs. 244,323 crores (approx. US$ 38 billion) for FPIs as the CCDL for all foreign investments in rupee denominated bonds (‘RDBs’) issued onshore and offshore by Indian corporates. Subsequently, the RBI, by way of its circular dated September 22, 2017, excluded foreign investment in RDBs issued offshore by Indian corporates from CCDL, with effect from October 3, 2017. In line with the same, SEBI, on September 29, 2017, has notified that foreign investments in rupee denominated bonds issued offshore by Indian corporates would no longer form a part of CCDL. Additionally, CCDL would be renamed as the corporate debt investment limits (‘CDIL’) for FPIs and the upper limit for CDIL would be stated only in Rupee terms.

The circular also contemplates the creation of a sub-limit within the overall CDIL exclusively for investments by long term FPIs in the infrastructure sector, which sub-limit would include investment in both listed and unlisted corporate debt issued by companies in the infrastructure sector. The sub-limit would be Rs. 9,500 crores (approx. US$ 1.5 billion) from October 3, 2017 and will be enhanced to Rs. 19,000 crores (approx. US$ 3 billion) on January 1, 2018 and will also be available for investment on tap. As mandated by SEBI previously, investment by FPIs in unlisted corporate debt securities and securitized debt instruments is not permitted to exceed Rs. 35,000 crores (approx. US$ 5.4 billion) within the extant CDIL.