RBI has withdrawn the provision of investment by Foreign Portfolio Investors in debt

Feb 18, 2019 | by Avantis RegTech Legal Research Team


Reserve Bank of India (RBI) on February 15, 2019, has published a Notification to withdraw the provision of Investment by Foreign Portfolio Investors (FPI) in corporate debt as specified under Paragraph 10 of the Statement on Developmental and Regulatory Policies.  According to Paragraph 4(f)(ii) of the Circular No. 31 dated June 15, 2018, no FPI should have an exposure of more than 20 % of its corporate bond portfolio to a single corporate (including exposure to entities related to the corporate). In order to encourage a wider spectrum of investors to access the Indian corporate debt market, RBI has decided to withdrawn this provision with immediate effect.

[Notification No.: RBI/2018-19/123]

URL: https://rbi.org.in/Scripts/NotificationUser.aspx?Id=11303&Mode=0


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