April 19, 2022
To,
All Authorized Persons
Madam / Sir
Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 1 to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified, vide Notification No. FEMA. 396/2019-RB dated October 17, 2019, as amended from time to time and the relevant Directions issued thereunder.
- A reference is also invited to the following directions issued by the Reserve Bank:
a) A.P. (DIR Series) Circular No. 25 dated March 30, 2020;
b) Circular No. FMRD.FMSD.No.25/14.01.006/2019-20 dated March 30, 2020;
c) A.P. (DIR Series) Circular No. 05 dated May 31, 2021; and
d) A.P. (DIR Series) Circular No. 23 dated February 10, 2022.
3. Investment Limits for the financial year (FY) 2022-23:
a) The limits for FPI investment in Government securities (G-secs), State Development Loans (SDLs) and corporate bonds shall remain unchanged at 6%, 2% and 15% respectively, of outstanding stocks of securities for FY 2022-23.
b) As hitherto, all investments by eligible investors in the ‘specified securities’ shall be reckoned under the Fully Accessible Route (FAR) in terms of A.P. (DIR Series) Circular No. 25 dated March 30, 2020.
c) The allocation of incremental changes in the G-sec limit (in absolute terms) over the two sub-categories – ‘General’ and ‘Long-term’ – shall be retained at 50:50 for FY 2022-23.
d) The entire increase in limits for SDLs (in absolute terms) has been added to the ‘General’ sub-category of SDLs.
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