Investment by Foreign Portfolio Investors in Debt – Review

Apr 26, 2019 | by Avantis RegTech Legal Research Team


The Reserve Bank of India (RBI) on April 25, 2019, has issued directions to take measure to broaden the access of non–resident investors to debt instruments in India under the Foreign Exchange Management Act, 1999. The Foreign Portfolio Investors (FPI) are now permitted to invest in municipal bonds.

The FPI investment in municipal bonds shall be reckoned within the limits set for FPI investment in State Development Loans (SDLs) and all the other existing conditions for investment by FPIs in the debt market remain unchanged. 

[Notification No. A.P. (DIR Series) Circular No. 33]

Click here to download the Notification.


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