Minimum residual maturity requirement for FPI debt investments mandates long-term maturities, excluding CPs and short-optional instruments. FPIs must make all new investments in Indian debt instruments with a minimum residual maturity of three years; fresh investments in commercial paper and in instruments with optionality exercisable within three years are prohibited. Investment in amortised instruments is permitted only where the instrument's duration is three years or longer. Arrangements that negate these maturity or optionality constraints do not conform with the prescribed directions, and authorised dealer banks must communicate and enforce these requirements under the stated regulatory powers.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Minimum residual maturity requirement for FPI debt investments mandates long-term maturities, excluding CPs and short-optional instruments.
FPIs must make all new investments in Indian debt instruments with a minimum residual maturity of three years; fresh investments in commercial paper and in instruments with optionality exercisable within three years are prohibited. Investment in amortised instruments is permitted only where the instrument's duration is three years or longer. Arrangements that negate these maturity or optionality constraints do not conform with the prescribed directions, and authorised dealer banks must communicate and enforce these requirements under the stated regulatory powers.
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