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Investment by FPI in Government Securities Medium Term Framework: RBI

RBI/2017-18/68
A.P.(DIR Series) Circular No. 7

September 28, 2017

To,

All Authorized Persons

Madam / Sir

Investment by Foreign Portfolio Investors (FPI) in Government Securities
Medium Term Framework

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 5 to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA.20/2000-RB dated May 3, 2000, as amended from time to time. Attention is also drawn to RBI/2017-18/12 A.P.(Dir Series) Circular No.1 dated July 3, 2017.

Revision of Limits for the next quarter Oct-Dec 2017

2. The limits for investment by FPIs for the quarter October-December 2017 is increased by INR 80 billion in Central Government Securities and INR 62 billion in State Development Loans. The revised limits are allocated as per the modified framework prescribed in the RBI/2017-18/12 A.P.(Dir Series) Circular No.1 dated July 3, 2017, and given as under.

Limits for FPI investment in Government Securities

Billion

Quarter Ending  

Central Government securities

 

State Development Loan Aggregate
General Long Term Total General Long Term Total
Existing Limits 1877 543 2420 285 46 331 2751
December 31, 2017 1897 603 2500 300 93 393 2893

3. The revised limits will be effective from October 3, 2017.

4. The operational guidelines relating to allocation and monitoring of limits will be issued by the Securities and Exchange Board of India (SEBI).

5. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

6. 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

(T. Rabi Sankar)
Chief General Manager

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