March 31, 2021
To,
All Authorized Persons
Madam / Sir
Investment by Foreign Portfolio Investors (FPI): Investment limits
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 A.P. (DIR Series)Circular No. 30 dated April 15, 2020 on the captioned subject.
Investment Limits for FY 2021-22
a. The limits for FPI investment in Corporate bonds shall remain unchanged at 15% of outstanding stock of securities for FY 2021-22. Accordingly, the revised limits for FPI investment in corporate bonds, after rounding off, shall be as under (Table – 1)
| Table – 1: Limits for FPI investment in Corporate bonds for FY 2021-22 |
| (₹ Crore) |
| Current FPI limit | 5,41,488 |
| Revised limit for HY Apr 2021-Sep 2021 | 5,74,263 |
| Revised limit for HY Oct 2021-Mar 2022 | 6,07,039 |
b. The revised limits for FPI investment in Central Government securities (G-secs) and State Development Loans (SDLs) for FY 2021-22 will be advised separately. Till such announcement, the current limits (as in Table – 2), shall continue to be applicable.
| Table – 2: Limits for FPI investments in G-Sec and SDL |
| (₹ Crore) |
| G-Sec General | G-Sec Long Term | SDL General | SDL Long Term | |
| FPI investment limits | 2,34,531 | 1,03,531 | 67,630 | 7,100 |
- 3. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
- 4. The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approval, if any, required under any other law.
Yours faithfully
(Dimple Bhandia)
Chief General Manager
For full detail click below :
https://www.dropbox.com/s/9pjquflxmat8sze/Investment%20by%20foreign%20portfolio.PDF?dl=0