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

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.