TMI BlogInvestment by Foreign Portfolio Investors (FPI) in Debt - ReviewX X X X Extracts X X X X X X X X Extracts X X X X ..... revised framework for Foreign Portfolio Investors (FPI) in debt was announced. It was further stated that a separate notification would be issued announcing other changes affecting operational aspects of FPI investments in debt, in consultation with SEBI. 3. Accordingly, the changes to operational aspects of FPI investment are set forth below. (a) Revision of minimum residual maturity requirement (i) In terms of A.P. (DIR Series) Circular No. 13 dated July 23, 2014 , FPIs were required to invest in Government bonds with a minimum residual maturity of three years. The minimum residual maturity requirement for Central Government securities (G-secs) and State Development Loans (SDLs) categories stands withdrawn, subject to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubject to the following concentration limits: (i) Long-term FPIs: 15% of prevailing investment limit for that category. (ii) Other FPIs: 10% of prevailing investment limit for that category. (iii) In case an FPI has investments (INV 0 ) in excess of the concentration limit on the effective date (date on which these concentration limits come into existence), it will be allowed the following relaxations, subject to availability of overall category limits, as a one-time measure: a. In case an FPI has investments (INV 0 ) in excess of the concentration limit on the effective date, it will be allowed to undertake additional investments such that its portfolio size at any point in time (INV t ) does not exceed INV 0 plus 2.5% of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the corporate). In case an FPI has exposure in excess of 20% to any corporate (including exposure to entities related to the corporate), it shall not make further investments in that corporate until this stipulation is met. A newly registered FPI shall be required to adhere to this stipulation starting no later than 6 months from the commencement of its investments. 4. Other changes: No FPI shall invest in partly paid instruments. 5. These directions would be applicable with immediate effect. 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/ approvals, if any, required under any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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