With a view to get the government securities and corporate bond markets on track, the government has recently announced its decision to enhance the FII limit for the government securities to up to $10 billion.

It is to be mentioned here that the earlier limit was standing at a level of $5 billion.

As the government has decided to double to limit on the FII investment, the government has also announced that it will raise the FII cap in bonds floated by companies engaged in the infrastructure business. It is to be mentioned here that the decision has come into effect after the government realized the importance of developing the infrastructure sector which is direct link with the growth of the economy.

It may be noted here that the Finance Minister Pranab Mukherjee said that the decision of the government will help it enhance the flow of FII funds into the debt markets.

Moreover, an official statement said that the government has increased the current limit of the FII investment in the country in the government securities by $5 billion and the current limits stands at $10 billion.