News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Circulars »
 Auction of Government of India Dated Securities August 19, 2019
 Emerging Challenges to Financial Stability (Shri Shaktikanta Das, Governor, Reserve Bank of India - Monday, August 19, 2019 - at FIBAC 2019 – the Annual Global Banking Conference organised by IBA and FICCI, Mumbai)
 Foreign Exchange Management (Deposit) (Amendment) Regulations, 2019 – Acceptance of Deposits by issue of Commercial Papers
 Direct Benefit Transfer (DBT) Scheme – Implementation
 Clarification in respect of filling-up of the ITR forms for the Assessment Year 2019-20
 Here's how you can file your income tax this year ITR Filing
  RBI-Auction of Government of India Dated Securities August 09, 2019
 RBI-Edited Transcript of Reserve Bank of India’s Third Bi-Monthly Monetary Policy Press Conference
 RBI-Task Force on Offshore Rupee Markets submits report to the Governor
 Notification No. 56/2019 Central Board Of Indirect Taxes And Customs
  RBI-Statement on Developmental and Regulatory Policies

Investment by Foreign Portfolio Investors (FPI) in Government Securities
October, 04th 2016

RBI/2016-17/72
A.P. (DIR Series) Circular No. 4

September 30, 2016

To,

All Authorised Persons

Madam/Sir

Investment by Foreign Portfolio Investors (FPI) in Government Securities

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. The limits for investment by foreign portfolio investors (FPI) in Government securities were last increased in terms of the Medium Term Framework (MTF) announced vide A.P. (DIR Series) Circular No. 55 dated March 29, 2016.

2. As announced in the MTF, the limits for investment by FPIs in Central Government Securities for the next half year are proposed to be increased in two tranches, each of Rs. 100 billion from October 3, 2016 and January 2, 2017 respectively.

3. As in the previous half-year, the limits for State Development Loans (SDLs) are proposed to be increased in two tranches, each of Rs.35 billion, from October 3, 2016 and January 2, 2017 respectively.

4. The total increase in limits over the next two quarters would, accordingly, be as under:

INR Billion
  Central Government securities State Development Loans Aggregate
For All FPIs Additional for Long Term FPIs Total For all FPIs 
(including Long Term FPIs)
Existing Limits 1440 560 2000 140 2140
Revised limits with effect from October 3, 2016 1480 620 2100 175 2275
Revised limits with effect from January 2, 2017 1520 680 2200 210 2410

5. As regards the transfer of unutilized portion of “Long Term FPI” category to “All FPIs” category, a separate communication will follow.

6. All other existing conditions, including the security-wise limits, investment of coupons being permitted outside the limits and investments being restricted to securities with a minimum residual maturity of three years, will continue apply.

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

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

9. 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

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions