Date: |
23-01-2020
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Notification No: |
A.P. (DIR Series) Circular No.19
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Issuing Authority: |
RBI
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Type: |
Circular
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File No: |
RBI/2019-20/151 |
Subject: |
‘Voluntary Retention Route’ (VRR) for Foreign Portfolio Investors (FPIs) investment in debt – relaxations
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RBI/2019-20/151 A.P. (DIR Series) Circular No.19
January 23, 2020
To
All Authorised persons
Madam / Sir,
‘Voluntary Retention
Route’ (VRR) for Foreign Portfolio Investors (FPIs) investment in debt –
relaxations
Attention of Authorised Dealer Category-I (AD Category-I)
banks is invited 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 relevant directions issued
thereunder. Attention is also invited to A.P. (DIR Series) Circular No. 34 dated
May 24, 2019 (hereinafter Directions).
2. On a review, the following
changes are made to the Directions governing investment through the Voluntary
Retention Route (VRR).
The investment cap is increased to Rs. 1,50,000
crores from Rs. 75,000 crores.
FPIs that have been allotted investment
limits under VRR may, at their discretion, transfer their investments made under
the General Investment Limit to VRR.
FPIs are also allowed to invest in
Exchange Traded Funds that invest only in debt instruments.
3. The
updated Directions are attached.
4. These directions are 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
(Saswat Mahapatra) Deputy General Manager (O-i-C)
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