ANNOUNCEMENT 27 Mar 2019

The Reserve Bank of India increased the investment limit in government securities by Foreign Portfolio Investors from 1 April 2019.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

RBI/2018-19/152 A.P. (DIR Series) Circular No. 26
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=11513&Mode=0

Inception date: 01 Apr 2019 | Removal date: 31 Mar 2020

Controls on commercial transactions and investment instruments

On 27 March 2019, the Reserve Bank of India through "RBI/2018-19/152 A.P. (DIR Series) Circular No. 26" 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 2233 billion (USD 32.28 billion) to INR 2347 billion (USD 33.93 billion) for the period Apr-Sep 2019 and to INR 2461 billion (USD 35.58 billion) for the period Oct 2019 - Mar 2020 while the limit in the Long Term Category has been increased from INR 923 billion (USD 13.34 billion) to INR 1037 billion (USD 14.99 billion) for the period Apr-Sep 2019 and to INR 1151 billion (USD 16.64 billion) for the period Oct 2019 - Mar 2020. 

Within the limit for investments in State Development Loans, the limit in the General Category has been increased from INR 381 billion (USD 5.50 billion) to INR 497 billion (USD 7.19 billion) for the period Apr-Sep 2019 and to INR 612 billion (USD 8.85 billion) for the period Oct 2019 - Mar 2020 while the limit in the Long Term Category has been left unchanged at INR 71 billion (USD 1.03 billion).

Lastly, the limit for investments in Corporate Bonds has been increased from INR 2891 billion (USD 41.79 billion) to INR 3031 billion (USD 43.82 billion) for the period Apr-Sep 2019 and to INR 3170 billion (USD 45.82 billion) for the period Oct 2019 - Mar 2020.

* INR to USD conversion at 1 USD = INR 69.17  on 27 March 2019.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A