Investment by Foreign Portfolio Investors (FPI) in Government Securities Medium Term Framework – Review

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..... (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. Review of the Medium term Framework 2. The current Medium Term Framework (MTF) for FPI investment in Central Government Securities (G-s .....

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..... erence for long-term investors and also with a view to manage the macro-prudential implications of evolving capital flows, the MTF has been reviewed. Based on the review, the following modifications are made to the Framework. a. The overall cap of 5% for Central Government securities (G-Secs) and 2% for State Development Loans (SDLs) remain unchanged. b. Future increases in the limit for FPI inv .....

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..... ptember 2017 are increased by INR 110 billion and INR 61 billion, respectively, and allocated as under:- Limits for FPI investment in Government Securities (INR Billion) Central Government securities State Development Loans Aggregate General Long Term Total General Long Term Total Existing Limits 1,849 461 2,310 270 -- 270 2,580 Revised limits 1,877 543 2,420 285 46 331 .....

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