The Reserve Bank of India issued directions to Authorised Dealer Category-I banks withdrawing two key investment limits that applied to Foreign Portfolio Investors (FPIs) investing in corporate debt securities through the General Route. FPIs were previously required to comply with the short-term investment limit and the concentration limit set out in the Master Direction on non-resident investment in debt instruments, but both requirements have now been withdrawn with immediate effect. An updated Master Direction has been issued, and banks are instructed to inform their constituents; the directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.
Reserve Bank of India 2025-05-08
Reserve Bank of India removes short-term and concentration limits for foreign portfolio investor purchases of corporate debt under the General Route
The Reserve Bank of India has removed the short-term investment and concentration limits for Foreign Portfolio Investors (FPIs) investing in corporate debt securities via the General Route. An updated Master Direction has been issued, and banks must inform their constituents of these changes. The directions are under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.