BUSINESS

RBI relaxes norms for FPI investment in government debt

Easing norms for foreign ownership of government debt, the Reserve Bank of India (RBI) on Tuesday announced higher investment limits in rupee terms in government securities by FPIs (foreign portfolio investors) with a view to bringing in an additional Rs.1.2 lakh crore by March 2018.

The announcement follows a decision by RBI to fix FPI investment limits in rupee terms and raise it in phases to reach 5 per cent of the outstanding stock by March 2018. RBI said in a notification.

For the current fiscal, RBI said it had been decided to enhance the limit for investment by FPIs in G-secs in two tranches from October 12, 2015, and January 1, 2016. The limit will be increased from Rs.1.53 lakh crore to Rs.1.7 lakh crore from October 12 and Rs.1.86 lakh crore from January 1. Additionally, RBI said there would be a separate limit for investment by all FPIs in the state development loans (SDLs), to be raised in phases to reach 2 per cent of the outstanding stock by March 2018. — PTI

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