RBI removes short-term, concentation limits for FPI investment in corp bonds
This story was originally published at 19:56 IST on 8 May 2025
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--RBI relaxes norms for FPI invest into corporate bonds under general route
--RBI: No short-term invest limit for FPIs in corp bonds via general route
--RBI: No concentation limit for FPI invest in corp bonds via general route
--RBI:Relaxation for FPI investment in corporate bonds effective immediately
MUMBAI – The Reserve Bank of India Thursday relaxed rules on foreign portfolio investment in corporate bonds by removing the short-term investment and concentration limits for investment through the general route. The amendment on FPI investment in corporate bonds will be effective immediately, the central bank said in a notification.
Earlier, investment by an FPI in corporate bonds with residual maturity up to one year was limited to 30% of the investor's total investment in corporate debt securities. FPIs are still barred from investing in corporate debt securities with an original or residual maturity of less than one year. On the concentration front, long-term FPIs could earlier hold only up to 15% of a single bond's investment limit, and for other FPIs the cap was 10% of the limit. End
Reported by Ashna Mariam George
Edited by Saji George Titus
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