a. The limit for FPI investment in corporate bonds is increased to 15% of outstanding stock for FY 2020-21. 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 2020-21
Current FPI limit
Revised limit for HY Apr 2020-Sep 2020
Revised limit for HY Oct 2020-Mar 2021
b. The revised limits for FPI investment in Central Government securities (G-secs) and State Development Loans (SDLs) for FY 2020-21 will be advised separately. Till such time, the current limits (as in Table - 2), shall continue to be applicable.
Table-2: Limits for FPI investments in G-Sec and SDL
G-Sec Long Term
SDL Long Term
FPI investment limits
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.
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