RBI had banned FIIs from buying short term G-sec( Tbills -Tnotes ) to prevent interest rate related volatility. It has proposed to allow currency hedging for FIIs. Investements by foreign portfolio investors in G-sec will be permitted only in dated securities of residual securities of residual maturity of one year or more. Existing investment in t bills will be allowed to taper off on maturity or sale. FII has used 85% of the 5.5 billion dollars limit allowed in T bills.
Rbi also proposed a no minimum balance penalty
RBI has liberalized the procedure for facilitating the import of rough diamonds (i.e. 'roughs'). Till now,
advance payment without any limit and without a Bank Guarantee (BG) or standby Letter of Credit (LoC)
could be made only to notified mining companies by an importer, other than a public sector company
or a department / undertaking of the Union or state governments. Henceforth, RBI will not notify the
names of foreign mining companies from which such an importer may import roughs through advance
payments and without any limit or BG or standby LoC.
Rbi also proposed a no minimum balance penalty
RBI has liberalized the procedure for facilitating the import of rough diamonds (i.e. 'roughs'). Till now,
advance payment without any limit and without a Bank Guarantee (BG) or standby Letter of Credit (LoC)
could be made only to notified mining companies by an importer, other than a public sector company
or a department / undertaking of the Union or state governments. Henceforth, RBI will not notify the
names of foreign mining companies from which such an importer may import roughs through advance
payments and without any limit or BG or standby LoC.
