|
RBI/2020-21/116
A.P. (DIR Series) Circular No. 14
March 31, 2021
To,
All Authorized Persons
Madam /
Sir
Investment by Foreign Portfolio Investors (FPI): Investment limits
Attention of Authorised Dealer Category-I (AD Category-I) banks is invited
to Schedule 1 to the Foreign Exchange Management (Debt Instruments) Regulations,
2019 notified vide Notification No. FEMA.396/2019-RB dated October 17, 2019, as
amended from time to time and the relevant Directions issued thereunder. A
reference is also invited to A.P. (DIR Series) Circular No. 30 dated April 15,
2020 on the captioned subject.
2. Investment Limits for FY 2021-22
a. The limits for FPI investment in Corporate bonds shall remain unchanged
at 15% of outstanding stock of securities for FY 2021-22. Accordingly, the
revised limits for FPI investment in corporate bonds, after rounding off, shall
be as under (Table - 1)
| Table - 1: Limits for FPI investment in Corporate bonds for FY 2021-22 |
| ₹ Crore)
|
| Current FPI limit |
5,41,488
|
| Revised limit for HY Apr 2021-Sep 2021 |
5,74,263 |
| Revised limit for HY Oct 2021-Mar 2022 |
6,07,039 |
b. The revised limits for FPI investment in
Central Government securities (G-secs) and State Development Loans (SDLs) for FY
2021-22 will be advised separately. Till such announcement, the current limits
(as in Table - 2), shall continue to be applicable.
| Table - 2: Limits for FPI investments in G-Sec and SDL
|
| ₹ Crore) |
| |
G-Sec General |
G-Sec Long Term |
SDL General |
SDL Long Term |
| FPI investment limits |
2,34,531 |
1,03,531 |
67,630 |
7,100 |
3. AD Category – I banks may bring the contents
of this circular to the notice of their constituents and customers concerned.
4. 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
(Dimple Bhandia)
Chief
General Manager
|