Voluntary Retention Route enables FPIs to access Indian debt with voluntary multi year retention commitments and relaxed limits. The Reserve Bank expanded the Voluntary Retention Route (VRR) for SEBI registered FPIs, making VRR allocations additional to General Investment Limits across VRR Govt, VRR Corp and VRR Combined. FPIs commit a Committed Portfolio Size (CPS) and a minimum Retention Period (minimum three years), must maintain at least 75% of CPS on an end of day basis, may reinvest income beyond CPS, and may transfer General Investment Limit holdings into VRR. Allocations occur on tap or by auction (bids of amount and retention period), with descending retention period priority and margin allocation rules. Custodians must enforce compliance and report violations to SEBI.
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.
Voluntary Retention Route enables FPIs to access Indian debt with voluntary multi year retention commitments and relaxed limits.
The Reserve Bank expanded the Voluntary Retention Route (VRR) for SEBI registered FPIs, making VRR allocations additional to General Investment Limits across VRR Govt, VRR Corp and VRR Combined. FPIs commit a Committed Portfolio Size (CPS) and a minimum Retention Period (minimum three years), must maintain at least 75% of CPS on an end of day basis, may reinvest income beyond CPS, and may transfer General Investment Limit holdings into VRR. Allocations occur on tap or by auction (bids of amount and retention period), with descending retention period priority and margin allocation rules. Custodians must enforce compliance and report violations to SEBI.
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