The Reserve Bank of India (RBI) on May 8 relaxed the norms for foreign portfolio investor’s (FPI) investment in corporate debt securities through general route.
This was done by withdrawing short-term investment limit and concentration limit, RBI said in a release.
The withdrawal was with a view to providing greater ease of investment to FPIs.
As per repealed clause, short-term investment limit is an investments by an FPI in corporate debt securities with residual maturity up to one year shall not exceed 30 per cent of the total investment of the FPI in corporate debt securities.
Concentration limit is an investment in corporate debt securities by an FPI (including its related FPIs) shall not exceed 15 per cent of prevailing investment limit for these securities in case of long-term FPIs and 10 per cent of prevailing investment limit for other FPIs, release said.
The central bank said that the directions are with immediate effect.
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