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?

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Q: 115 (CAPF/2013)
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?

question_subject: 

Economics

question_exam: 

CAPF

stats: 

0,19,41,11,10,20,19

keywords: 

{'foreign investments': [0, 0, 0, 1], 'investment': [0, 0, 0, 1], 'investments': [0, 0, 0, 3], 'foreign institutional investors': [0, 1, 1, 3], 'government securities': [0, 1, 0, 5], 'overseas capital': [0, 0, 0, 1], 'rupee': [1, 0, 1, 0], 'sebi': [0, 1, 0, 4], 'india': [8, 1, 7, 13], 'limit': [2, 0, 0, 1], 'us dollar': [0, 2, 0, 1], 'government': [5, 0, 0, 1]}

Option 1: This statement is correct. The Government of India enhanced the limit of foreign investments in government securities in order to increase the inflow of overseas capital. This would help in boosting the foreign exchange reserves of the country.

Option 2: This statement is correct. By allowing more foreign investments in government securities, the demand for rupee will increase, which would strengthen its value.

Option 3: This statement is correct. The enhanced limit of 5 billion US dollars is applicable only to foreign institutional investors registered with the Securities and Exchange Board of India (SEBI). Other investors may not be eligible for this enhanced limit.

Option 4: This statement is incorrect. The investment in government securities under the enhanced limit can only be made in certain categories as specified by the Government. It is not applicable across all categories of investments.

In conclusion, option 4 is the correct answer as it states an incorrect statement regarding the eligibility of investment in all categories across the board.