RBI keeps FPIs investment limit in G-sec unchanged at 6% of outstanding stocks for FY25

Reserve Bank of India

The Reserve Bank of India (RBI) on April 26 kept the investment limit by Foreign Portfolio Investors (FPI) in government securities unchanged at 6 percent of the outstanding securities stocks for 2024-25.

Moreover, the central bank, in a statement, announced that it would maintain the FPI limits for investment in state government securities and corporate bonds at 2 percent and 15 percent, respectively, of the outstanding securities stocks for FY25.

The allocation of incremental changes in the g-sec limit (in absolute terms) over the two sub-categories – ‘General’ and ‘Long-term’ – shall be retained at 50:50 for 2024-25, the release said.

Further, the aggregate limit of the notional amount of Credit Default Swaps sold by FPIs shall be 5 percent of the outstanding stock of corporate bonds, RBI said.

Accordingly, an additional limit of Rs 2,54,500 crore has been set out for FY25, release added.