RBI/2018-19/123
A.P. (DIR Series) Circular No. 19
February
15, 2019
To
All Authorised persons
Madam / Sir,
Investment by Foreign Portfolio
Investors (FPI) in Debt
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, 2017 notified vide Notification No. FEMA.20(R)/2017-RB dated November 07, 2017,
as amended from time to time and the relevant directions issued thereunder.
2. In terms of paragraph 4(f)
(ii) of the AP (DIR Series) Circular No. 31
dated June 15, 2018 no FPI shall have an exposure of more than
20% of its corporate bond portfolio to a single corporate (including
exposure to entities related to the corporate). As announced in paragraph
10 of the Statement on Developmental and
Regulatory Policies of the Sixth
Bi-monthly Monetary Policy Statement for 2018-19 dated February 07, 2019,
in order to encourage a wider spectrum of investors to access the Indian
corporate debt market, it has been decided to withdraw this provision with
immediate effect.
3. 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/ approvals, if any, required under any other law.
Yours
faithfully
(T.
Rabi Sankar)
Chief General Manager
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