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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.
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Limits
for FPI investment in Government Securities
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?
Billion
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Quarter
Ending
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Central
Government securities
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State
Development Loans
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Aggregate
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General
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Long
Term
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Total
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General
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Long
Term
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Total
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Existing Limits
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1877
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543
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2420
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285
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46
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331
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2751
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December 31, 2017
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1897
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603
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2500
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300
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93
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393
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2893
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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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