Foreign portfolio investors can now invest one-fifth of their total investment in less than one-year residual debt papers sold by companies, the Reserve Bank of India said in a notification on Tuesday.
‘In order to bring consistency across debt categories, it is stipulated that investments by an FPI in corporate bonds with residual maturity below one year shall not exceed, at any point in time, 20% of the total investment of that FPI in corporate bonds,’ the central bank said.
Before this change FPIs were only permitted to invest in corporate bonds with minimum residual maturity of three years or above. They are now being allowed to invest in securities of less than one year but only up to 20%.
via RBI: RBI widens FPIs’ investment scope in local corporate debt – The Economic Times
aniltikotekar4sme.com 