{"id":89708,"date":"2025-06-01T10:11:02","date_gmt":"2025-06-01T10:11:02","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=89708"},"modified":"2025-06-01T10:11:02","modified_gmt":"2025-06-01T10:11:02","slug":"the-government-of-india-on-12th-june-2013-enhanced-the-limit-of-forei","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-government-of-india-on-12th-june-2013-enhanced-the-limit-of-forei\/","title":{"rendered":"The Government of India on 12th June, 2013 enhanced the limit of forei"},"content":{"rendered":"

The Government of India on 12th June, 2013 enhanced the limit of foreign investments in government securities by 5 billion US dollar. In this regard, which of the following statements is not correct?<\/p>\n

[amp_mcq option1=”It was done in order to increase inflow of overseas capital” option2=”It will strengthen the value of rupee” option3=”The foreign institutional investors registered to SEBI are only eligible for investment in the enhanced limit of 5 billion US dollar” option4=”The investment can be made in all categories of investments across the board” correct=”option4″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CAPF – 2013<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nStatement D is not correct.
\n<\/section>\n
\n– The government enhanced the limit of foreign investments specifically in *government securities* (G-secs) and corporate bonds by $5 billion in June 2013. This measure was aimed at attracting more foreign capital inflow to support the Indian rupee, which was facing depreciation pressure at the time.
\n– Increasing foreign investment limits in debt markets (like G-secs) helps increase the supply of foreign currency (US Dollars) in the Indian market, which can strengthen the demand for the Indian Rupee, potentially supporting its value.
\n– Foreign Institutional Investors (FIIs, now largely replaced by Foreign Portfolio Investors – FPIs) registered with SEBI are the primary channels through which foreign investments are made in the Indian securities market under specified limits and regulations. Therefore, eligibility was indeed restricted to such registered entities.
\n– The enhancement was specifically for investments in government securities and corporate bonds, not “all categories of investments across the board”, which would include equities, alternative investment funds, etc.
\n<\/section>\n
\n– Such measures are part of capital account management by the central bank (RBI) and the government to influence foreign exchange flows and manage the currency value and external debt.
\n– The total FII limit for investment in government securities was raised to $25 billion after this announcement.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

The Government of India on 12th June, 2013 enhanced the limit of foreign investments in government securities by 5 billion US dollar. In this regard, which of the following statements is not correct? [amp_mcq option1=”It was done in order to increase inflow of overseas capital” option2=”It will strengthen the value of rupee” option3=”The foreign institutional … <\/p>\n

Detailed SolutionThe Government of India on 12th June, 2013 enhanced the limit of forei<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1467,1226],"class_list":["post-89708","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1467","tag-external-sector-of-economy","no-featured-image-padding"],"yoast_head":"\nThe Government of India on 12th June, 2013 enhanced the limit of forei<\/title>\n<meta name=\"description\" content=\"Statement D is not correct. - The government enhanced the limit of foreign investments specifically in *government securities* (G-secs) and corporate bonds by $5 billion in June 2013. This measure was aimed at attracting more foreign capital inflow to support the Indian rupee, which was facing depreciation pressure at the time. - Increasing foreign investment limits in debt markets (like G-secs) helps increase the supply of foreign currency (US Dollars) in the Indian market, which can strengthen the demand for the Indian Rupee, potentially supporting its value. - Foreign Institutional Investors (FIIs, now largely replaced by Foreign Portfolio Investors - FPIs) registered with SEBI are the primary channels through which foreign investments are made in the Indian securities market under specified limits and regulations. 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