As per Medium Term Framework (MTF), the FPI limits were to increase in phases to reach 2 per cent of the outstanding stock by March 2018. However, the FPI limit utilization of SDLs stood at only 12 per cent of the limit for the quarter ending March 2018, and lower at 10 per cent of the limit for the quarter ending June 2018.
FPIs have cited lack of information on financial position of states between two budgets, and opacity of State Government (SG) 6  operations as one of the main reasons for lackluster interest in SDLs, despite the yields they have to offer.