Wait...

Online Export Import Data Search

Complete Training Video : Click Here

Date: 06-04-2018
Notification No: A.P. (DIR Series) Circular No.22
Issuing Authority: RBI  
Type: A.P.D.(Series) Circulars
File No:
Subject: Investment by Foreign Portfolio Investors (FPI) in Government Securities - Medium Term Framework – Review

RBI/2017-18/150
A.P.(DIR Series) Circular No. 22

06 thApril 2018

To

All Authorized Persons

Madam / Sir

Investment by Foreign Portfolio Investors (FPI) in Government Securities -
Medium Term Framework – Review

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 3, 2000, as amended from time to time.

2. The Statement on Developmental and Regulatory Policies, Fourth Bi-monthly Monetary Policy Statement, 2017-18 proposed that a detailed review of current regulations on debt investment by Foreign Portfolio Investors (FPI) shall be undertaken to facilitate the process of investment and hedging by FPIs. The regulatory changes would be effective from April 2018. Accordingly, after consultation with the Government of India, the FPI limits are revised as below:

3. Revision of Investment Limits

a. The limit for FPI investment in Central Government securities (G-secs) would be increased by 0.5% each year to 5.5% of outstanding stock of securities in 2018-19 and 6% of outstanding stock of securities in 2019-20.

b. The limit for FPI investment in State Development Loans (SDLs) would remain unchanged at 2% of outstanding stock of securities.

c. The overall limit for FPI investment in corporate bonds will be fixed at 9% of outstanding stock of corporate bonds. All the existing sub-categories under the category of corporate bonds will be discontinued and there would be a single limit for FPI investment in all types of corporate bonds.

d. No fresh allocation has been made to the ‘Long-term’ sub-category under SDLs. Out of the existing limit of ₹ 13,600 crore for this sub-category, an amount of ₹ 6,500 crore has been transferred to the G-secs category.

e. The allocation of increase in G-sec limit over the two sub-categories – ‘General’ and ‘Long-term’ – remains at the current ratio of 25:75. However, based on an assessment of investment interest, this ratio has been re-set at 50:50 for the year 2018-19.

f. Coupon reinvestment by FPIs in G-secs, which was hitherto outside the investment limit, will now be reckoned within the G-sec limits. FPIs may, however, continue to reinvest coupons without any constraint, as they do now. Only at the time of periodic re-setting of limits, coupon investments would be added to the amount of utilization. Accordingly, for the year 2018-19, the stock of coupon investment of ₹ 4,760 crore as on March 31, 2018, would be added to the actual utilization under the ‘General’ sub-category of G-secs. Since this is a new policy, as a one-time measure, the investment limit in the ‘General’ sub-category of G-secs has been increased by an amount equal to the stock of coupon reinvestment as on March 31, 2018. This increase in limit on account of coupon investment amount is over and above the limit indicated in paragraph 3(a).

g. This coupon reinvestment arrangement will be extended to other debt categories subsequently.

h. Accordingly, the revised limits for the various categories, after rounding off, would be as under

(TABLE 1):

Table 1 - Revised Limits for FPI Investment in Debt - 2018-19 (Rupees crore)
G-Sec-General G-Sec-Long Term SDL -General SDL-Long Term Corporate Bonds Total Debt
Current Limit 191,300 65,100 31,500 13,600 244,323 545,823
Revised Limit for the HY Apr-Sep, 2018 207,300 78,700 34,800 7,100 266,700 594,600
Revised Limit for the HY Oct 2018-March, 2019 223,300* 92,300 38,100 7,100 289,100 649,900
* Includes ₹ 4,760 crore one-time addition to limit to provide for inclusion of coupon investment amount in utilization.

4. These directions would be applicable with immediate effect.

5. A separate notification will be issued announcing coupon reinvestment arrangements referred to in paragraph 3(g) and other changes affecting operational aspects of FPI investments in debt, in consultation with SEBI.

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/ approvals, if any, required under any other law.

Yours faithfully
(T. Rabi Sankar)
Chief General Manager

       

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 17-04-2018
Notification No. 21/2018-Customs (ADD)
seeks to extend the levy of anti-dumping duty, imposed on imports of Soda Ash originating in or exported from Russia and Turkey under Notification No. 8/2013-Customs (ADD), dated the 18.04.2013 for a further period of one year (i.e. 16.04.2019) or till the conclusion of the sunset review investigations initiated by the Designated Authority vide initiation notification No.7/4/2018-DGAD dated the 16th April, 2018, whichever is earlier.

Date: 16-04-2018
DGFT Notification No.02/2015-2020
Incorporatoin of new HS Codes for laying down import policy for Kabuli Chana, Bengal gram and Others under Exim Code 0713 of Chapter 07 of ITC (HS), 2017, Schedule - I (Import Policy).

Date: 16-04-2018
DGFT Notification No.03/2015-2020
Amendment in import policy conditions under Exim Code 9022 of Chapter 90 of ITC (HS), 2017, Schedule - I (Import Policy).

Date: 13-04-2018
Notification No.32/2018-Customs (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver.

Date: 12-04-2018
A.P. (DIR Series) Circular No.23
Liberalised Remittance Scheme (LRS) for Resident Individuals – daily reporting of transactions

Date: 11-04-2018
Trade Notice No- 2/2018-19
Launch of facility to check status of Importer Exporter Code (IEC) application made to DGFT

Date: 10-04-2018
Notification No. 43/2018-Customs
seeks to increase tariff rate of basic customs duty (BCD) on tariff items covered under tariff sub head 0404 10 ie. Whey and modified Whey, whether or not concentrated or containing added sugar or other sweetening matter, and under tariff item 0404 90 00 ie. Other Whey from present 30% to 40% by invoking section 8A (1) of the Customs Tariff Act, 1975.

Date: 10-04-2018
Notification No. 44/2018-Customs
seeks to amend notification No. 50/2017 Customs dated 30.06.2017 so as to maintain effective rate of BCD on Whey, concentrated, evaporated or condensed, liquid or semi-solid (0404 10 10) and Other Whey (0404 90 00) at 30%.

Date: 10-04-2018
Notification No. 20/2018-Customs (ADD)
seeks to impose definitive anti dumping duty on imports fishnet or fishing nets originating from China or Bangladesh.

Date: 06-04-2018
Customs Instruction No. 8/2018
Clarification regarding classification of Solar Panel/Module equipped with element.



Exim Guru Copyright © 1999-2018 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001