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RBI/2017-18/68
A.P.(DIR Series) Circular No. 7
September 28th, 2017
To,
All Authorized Persons
Madam / Sir
Investment by Foreign Portfolio Investors (FPI) in Government Securities
Medium Term Framework
Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to
Schedule 5 to the Foreign Exchange Management (Transfer or Issue of Security by
a Person Resident outside India) Regulations, 2000 notified vide Notification
No. FEMA.20/2000-RB dated May 3rd, 2000, as amended from time to time. Attention
is also drawn to RBI/2017-18/12
A.P.(Dir Series) Circular No.1 dated July 3rd,
2017.
Revision of Limits for the next quarter Oct-Dec 2017
2. The limits for investment by FPIs for the quarter October-December 2017 is
increased by INR 80 billion in Central Government Securities and INR 62 billion
in State Development Loans. The revised limits are allocated as per the modified
framework prescribed in the RBI/2017-18/12
A.P.(Dir Series) Circular No.1 dated
July 3rd, 2017, and given as under.
| Limits for FPI investment in Government Securities |
| Billion |
| Quarter Ending |
Central Government securities |
State Development Loans |
Aggregate |
| General |
Long Term |
Total |
General |
Long Term |
Total |
| Existing Limits |
1877 |
543 |
2420 |
285 |
46 |
331 |
2751 |
| December 31, 2017 |
1897 |
603 |
2500 |
300 |
93 |
393 |
2893 |
3. The revised limits will be effective from October 3rd, 2017.
4. The
operational guidelines relating to allocation and monitoring of limits will be
issued by the Securities and Exchange Board of India (SEBI).
5. AD
Category – I banks may bring the contents of this circular to the notice of
their constituents and customers concerned.
6. The directions contained
in this circular have been issued under sections 10(4) and 11(1) of the Foreign
Exchange Management Act, 1999 (42 of 1999) and are without prejudice to
permissions/approval, if any, required under any other law.
Yours faithfully
(T. Rabi Sankar)
Chief General Manager
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