RBI reopens allotment of investment limit under Voluntary Retention Route

Jan 24, 2020 | by Avantis RegTech Legal Research Team

Finance & Taxation Compliance

The Reserve Bank of India (RBI) on January 23, 2020, reopens allotment of investment limit under the revised Voluntary Retention Route (VRR) for Investments by Foreign Portfolio Investors (FPIs). RBI had introduced the VRR for investments by FPIs on March 01, 2019 vide Circular No. A.P. (DIR Series) Circular No. 21.

RBI has decided to made certain amendments to increase its operational flexibility, as per following details:-

a) The investment limit under VRR has been increased to Rs. 1,50,000 crores.

b) The investment limit available for fresh allotment shall accordingly be Rs. 90,630 crores (net of extant allotments and adjustments); and shall be allotted under the VRR–Combined category.

c) The minimum retention period shall be three years.

d) Investment limits shall be available ‘on tap’ and allotted on ‘first come, first served’ basis.

e) The ‘tap’ shall be kept open till the limit is fully allotted.

f) FPIs may apply for investment limits online to Clearing Corporation of India Ltd. (CCIL) through their respective custodians.

g) CCIL will separately notify the operational details of application process and allotment.

[Press Release: 2019-2020/1778]


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