RBI/2019-20/199
A.P. (DIR Series) Circular No. 24

March 30, 2020

To,

All Authorized Persons

Madam / Sir

Investment by Foreign Portfolio Investors (FPI): Investment limits

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 1 to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified vide Notification No.FEMA.396/2019-RB dated October 17, 2019, as amended from time to time and the relevant directions issued thereunder. A reference is also invited to A.P. (DIR Series) Circular No. 26 dated March 27, 2019 on the captioned subject.

2. Investment Limits for FY 2020-21

a. The limit for FPI investment in corporate bonds is increased to 15% of outstanding stock for FY 2020-21. Accordingly, the revised limits for FPI investment in corporate bonds, after rounding off, shall be as under (Table - 1):

b. The revised limits for FPI investment in Central Government securities (G-secs) and State Development Loans (SDLs) for FY 2020-21 will be advised separately. Till such time, the current limits (as in Table - 2), shall continue to be applicable.

3. AD Category–I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

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

Yours faithfully,

(Dimple Bhandia)
General Manager-in-Charge