In a bid to encourage long-term investments into the debt market, the sub-limit for investments in short-term papers by foreign investors has been cut, said the Reserve Bank of India (RBI) on Friday. “On a review, to encourage long-term investors, it has now been decided, to reduce, with immediate effect, the existing Commercial Paper (CP) sub-limit of $3.5 billion by $1.5 billion to $2 billion. The balance $1.5 billion shall, however, continue to be part of the total corporate debt limit of $51 billion and will be available to eligible foreign investors for investment in corporate debt,” said RBI. According to RBI the eligible investors include Foreign Institutional Investors (FIIs), Qualified Foreign Investors (QFIs) and other long-term investors registered with Securities and Exchange Board of India (Sebi). According to RBI the operational guidelines in this regard will be issued by Sebi.