ANNOUNCEMENT 14 Feb 2014

In February 2014, the government of India announced changed rules for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 14 Feb 2014 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

 On 14 February 2014, the Reserve Bank of India amended the limit of investment in Commercial Papers by registered Foreign Instutional Investors, Qualified Foreign Investors and other long term investors. Prior to the change, foreign investors were allowed to hold a maximum of USD 3.5 billion in short-term Commercial Paper. This limit has been decreased to USD 2 billion.
The overall cap on foreign investment into corporate debt remains at USD 51 billion. The balance of USD 1.5 billion is thus being made available for corporate debt investment outside short-term commercial paper.
According to the RBI, the motivation behind the stated change is to promote longer term investments.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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