The Reserve Bank of India (“RBI”) had vide A.P. (DIR Series) Circular No. 31 dated June 15, 2018 (“Circular 1”) permitted Foreign Portfolio Investors (“FPIs”) to invest in Central Government securities (G-secs), including in Treasury Bills and State Development Loans without any minimum residual maturity requirement subject to the condition that short-term investments under either category shall not exceed 30% (thirty percent) of the total investment of that FPI in that category.
Further, FPIs were permitted to invest in corporate bonds with minimum residual maturity of above 1 (one) year, subject to the condition that short-term investments in corporate bonds shall not exceed 30% (thirty percent) of the total investment of that FPI in corporate bonds. However, these stipulations do not apply to investments in ‘exempted securities’ as specified in Circular 1.
RBI has now, for the period between July 8, 2022 and October 31, 2022 (both dates included):
Please find a copy of the circular here.
This update has been contributed by Aastha (Partner) and Aditi Singh Kashyap (Associate).
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