IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 06 Apr 2018 | Removal date: 31 Mar 2019
Still in force

Controls on commercial transactions and investment instruments

On 6 April 2018, the Reserve Bank of India through "RBI/2017-18/150 A.P.(DIR Series) Circular No. 22" increased the investment limit for Foreign Portfolio Investors (FPIs) in Central Government Securities, State Development Loans, and Corporate Bonds.

Within the limit for investments in Central Government Securities, the limit in the General Category has been increased from INR 1913 billion (USD 29.4 billion) to INR 2073 billion (USD 31.94 billion) for the period Apr-Sep 2018 and to INR 2233 billion (USD 34.4 billion) for the period Oct 2018 - Mar 2019 while the limit in the Long Term Category has been increased from INR 651 billion (USD 10.03 billion) to INR 787 billion (USD 12.12 billion) for the period Apr-Sep 2018 and to INR 923 billion (USD 14.22 billion) for the period Oct 2018 - Mar 2019. 

Within the limit for investments in State Development Loans, the limit in the General Category has been increased from INR 315 billion (USD 4.85 billion) to INR 348 billion (USD 5.36 billion) for the period Apr-Sep 2018 and to INR 381 billion (USD 5.87 billion) for the period Oct 2018 - Mar 2019 while the limit in the Long Term Category of the existing limit of INR 136 billion (USD 2.09 billion), INR 65 billion (USD 1 billion) has been transferred to the Government Securities category.

Lastly, the limit for investments in Corporate Bonds has been increased from INR 2443 billion (USD 37.64 billion) to INR 2667 billion (USD 41.09 billion) for the period Apr-Sep 2018 and to INR 2891 billion (USD 44.54 billion) for the period Oct 2018 - Mar 2019.

* INR to USD conversion at 1 USD = INR 64.91  on 6 April 2018.

AFFECTED COUNTRIES

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