FPI investment limit in government securities unchanged at 6% of outstanding stocks for FY25: RBI
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The Reserve Bank of India (RBI) has said that the limits for Foreign Portfolio Investors (FPI) investment in government securities (g-secs), state government securities (SGSs) and corporate bonds will remain unchanged at 6 per cent, 2 per cent and 15 per cent, respectively, of outstanding stocks of securities for the current fiscal (FY25).
RBI said as of now, all investments by eligible investors in the 'specified securities' will be reckoned under the fully accessible route (FAR). The allocation of incremental changes in the g-sec limit (in absolute terms) over the two sub-categories 'General' and 'Long-term' will be retained at 50:50 for 2024-25.
It further said the entire increase in limits for SDLs (in absolute terms) has been added to the general sub-category of state development loans. It said the aggregate limit of the notional amount of Credit Default Swaps (CDS) sold by foreign portfolio investors will be 5 per cent of the outstanding stock of corporate bonds. Accordingly, an additional limit of Rs 2,54,500 crore is set out for 2024-25.
