RBI/2019-20/200
A.P. (DIR Series) Circular No. 25

March 30, 2020

To
All Authorized Persons
Madam / Sir

‘Fully Accessible Route’ for Investment by Non-residents in Government Securities

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to the following regulations / directions, as amended from time to time, and the relevant directions issued thereunder:

Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified vide Notification No. FEMA. 396/2019-RB dated October 17, 2019 (hereinafter, Debt Regulations);

The A.P. (DIR Series) Circular No. 31 dated June 15, 2018 read with A.P. (DIR Series) Circular No. 18 dated January 23, 2020; and

The directions FMRD.FMSD.No.25/14.01.006/2019-20 dated March 30, 2020 issued today (hereinafter, FAR Directions).

2. A reference is also invited to the announcement made in the Union Budget 2020-21 that certain specified categories of Central Government securities would be opened fully for non-resident investors without any restrictions, apart from being available to domestic investors as well. Accordingly, it has been decided, in consultation with the Government of India, to introduce a separate route viz., Fully Accessible Route (FAR) for investment by non-residents in securities issued by the Government of India. The details of the scheme are attached (see Annex).

3. These directions shall come into effect from April 1, 2020.

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

Yours faithfully,

(Dimple Bhandia)
General Manager-in-Charge