FPI investment limits in government securities increased, triggering SEBI guidelines and AD Category I compliance obligations.
Revision of FPI investment limits increases permitted holdings in Central Government Securities and State Development Loans for the October-December 2017 quarter, with the revised allocations effective October 3, 2017. SEBI will issue operational guidelines for allocation and monitoring of the revised limits, and AD Category I banks must inform their constituents; the directions are issued under FEMA and subject to other applicable permissions.

Rupee denominated bonds excluded from FPI corporate bond limit; reporting via ECB norms, with other ECB policy unchanged.
Issuance of Rupee denominated bonds overseas is excluded from the cap on investments by foreign portfolio investors in corporate bonds, removing those issuances from the FPI corporate bond limit. The additional email reporting requirement for RDB transactions is dispensed with, but RDBs continue to be reported under existing External Commercial Borrowing norms; all other ECB policy remains unchanged.

Masala bond reclassification: reassigns masala bond issuances to ECB framework and restores corporate bond capacity for FPIs.
Masala bonds are reclassified from the FPI corporate bond limit to the ECB framework and will be monitored accordingly. The amount freed by this shift will be restored to the FPI corporate bond ceiling through phased quarterly allocations, and a portion of each quarterly allocation is reserved exclusively for long term FPIs to invest in infrastructure as defined under the Master Direction on ECBs. All other FPI debt investment conditions remain unchanged.

Electronic Bank Realisation Certificate issuance must be generated solely from EDPMS data to ensure consistent export realisation reporting.
Authorised Dealer Category I banks must update the Export Data Processing and Monitoring System (EDPMS) with export proceeds as realised and, from the mandated operative date, generate Electronic Bank Realisation Certificates (eBRC) solely from EDPMS data to ensure consistency; banks must also adapt IT systems and capture advance and outstanding inward remittances in EDPMS, notify constituents, and note the amendment to the Master Direction, all pursuant to powers under the Foreign Exchange Management Act.

Foreign direct investment framework: unified Automatic and Government entry routes with sectoral caps, conditionalities and reporting obligations.
The Consolidated FDI Policy (effective August 28, 2017) provides a unified framework for foreign direct investment into India, defining eligible investors, investee entities and permissible instruments; it prescribes two entry routes (Automatic and Government), specifies sectoral caps, conditionalities and prohibited sectors, sets pricing, valuation, lock-in and reporting requirements (including FC-GPR and FC-TRS filings), details procedures for transfers and conversions, and identifies Competent Authorities and compliance, monitoring and remittance obligations under FEMA, SEBI and sectoral regulations.

Foreign exchange reporting obligations: fortnightly Form BAL filings moved to RBI web portal; monthly Nostro/Vostro report discontinued.
Head/Principal Offices of Authorised Dealer Category I banks must submit holdings of all foreign currencies in Form BAL on a fortnightly basis via the Reserve Bank web portal, effective from August 16, 2017, with returns filed within seven calendar days of the reporting period; the separate monthly Nostro/Vostro account balance report is discontinued. Directions issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.

Government backed Line of Credit for export finance imposes 75% India sourcing and EDF declaration requirements.
A Government of India supported Line of Credit (LoC) from Exim Bank to Ghana finances export of eligible goods and services for a sugarcane development and irrigation project, requiring at least 75% of contract value to be supplied from India and allowing 25% procurement from abroad. The LoC is effective from July 7, 2017 with a terminal utilisation period of 60 months after scheduled completion. Shipments must be declared on the Export Declaration Form; no agency commission is payable under the LoC though exporters may remit commission from their own resources or EEFC balances subject to AD Category I bank compliance. Directions are issued under Section 10(4) and Section 11(1) of FEMA.

FPI investment limits prioritise long term investors, reallocating future increases to favour longer horizon capital and tightening transfers.
The Medium Term Framework for FPI investment preserves overall caps for Central Government Securities and SDLs but reallocates future increases to favour the Long Term category (3:1 ratio versus General), removes transfer of unutilised Long Term limits to General, and harmonises SDL treatment with G secs. July-September quarter limits were increased and effective July 4, 2017. Existing conditions continue to apply, including security wise limits, coupons permitted outside overall limits, and a minimum three year residual maturity; SEBI will issue operational allocation and monitoring guidelines.

Masala bond issuance rules centralized with revised maturity, pricing ceiling, and investor eligibility for overseas rupee bonds.
Proposals for issuance of Rupee denominated bonds overseas will be examined at the Foreign Exchange Department, Central Office, Mumbai. Revised issuance parameters include differentiated minimum original maturity by issuance size, an all in cost ceiling set as a margin over the Government securities yield of corresponding maturity, and recognised investors limited to those permitted under the Master Direction who are not related parties within the meaning of Ind AS 24.

Line of Credit export financing requires majority Indian sourcing, EDF shipment declaration and regulated commission payment.
A Government of India supported Line of Credit of US dollar four million has been extended by Export-Import Bank of India to the Government of Guyana to finance procurement of high-capacity fixed and mobile drainage pumps and associated structures. The credit finances exports of eligible goods and services from India; suppliers must source at least 75 per cent of the contract price from India while up to 25 per cent may be procured from abroad. Shipments under the LoC must be declared on the Export Declaration Form, and AD Category I banks must notify exporters and advise them to obtain full details from Exim Bank. No agency commission is payable under the LoC, though exporters may use own funds or EEFC balances for commission after realization.

Line of Credit for Project Trident conditions Indian content, compliance with export declaration and FEMA requirements.
Exim Bank's Government-supported Line of Credit for Project Trident finances eligible exports from India with a requirement that at least 75 percent of contract value be supplied from India and up to 25 percent may be procured abroad; effective April 3, 2017, the LoC allows a terminal utilization period of 60 months after project completion, mandates Export Declaration Form filing, prohibits agency commission payable under the LoC while permitting exporter-funded or EEFC-funded commission payments after realization, and instructs AD Category I banks to inform exporters and obtain full LoC details from Exim Bank, issued under the Foreign Exchange Management Act.

Government-backed line of credit supports exports with majority domestic sourcing requirement and mandatory EDF shipment declarations.
A Government-supported Line of Credit from Exim Bank to Nicaragua finances exports for transmission and substation works, requiring at least 75 per cent of contract value to be supplied from India and permitting up to 25 per cent foreign procurement; effective March 30, 2017 with a terminal utilization period of 60 months post completion. Shipments must be declared on the Export Declaration Form, no agency commission is payable under the LOC though exporters may remit commission from own resources or EEFC balances subject to AD Category I bank compliance, and AD banks must notify exporters and obtain LOC details from Exim Bank.

Foreign portfolio investor limits increased for government securities, with revised allocations effective and SEBI to issue operational guidelines.
Limits for investment by Foreign Portfolio Investors in Central Government Securities and State Development Loans are increased for April-June 2017, effective April 1, 2017; unutilised long term investor limits at end March 2017 will be released to the general category in April 2017. Existing conditions continue to apply, including security wise limits, coupons permitted outside limits, and a minimum residual maturity of three years; SEBI will issue operational allocation and monitoring guidelines.

Purchase of foreign exchange restored to pre temporary limits; authorised persons must follow reinstated operational procedures under FEMA.
The Reserve Bank restores the prior regime for purchase of foreign exchange by authorised persons as set out in paragraph 4.4(e)(iii) of the Annex to A.P. (DIR Series) Circular No.17, reversing temporary amendments that allowed limited weekly exchange for foreign passport holders, and directs authorised persons to follow the reinstated operational procedures; the directions are issued under the Foreign Exchange Management Act and do not affect other statutory permissions.

Hedging by non resident parents permits booking forex derivatives to hedge Indian subsidiary exposures under RBI prescribed conditions.
Non resident parents or their treasuries may enter into FCY INR derivative contracts with AD Category I banks to hedge currency risk of and on behalf of their Indian subsidiaries, subject to Reserve Bank terms. Transactions must be governed by a tri partite agreement detailing roles and settlement; non resident entities must be in FATF or equivalent jurisdictions; AD banks must perform KYC/AML, monitor underlying exposures, ensure profits/losses are settled in the subsidiary's accounts with auditor certification, and report contracts to CCIL with a special tag.

Line of Credit compliance: export eligibility, local content requirement and declaration obligations govern financed shipments.
Government-supported Line of Credit by Export-Import Bank for a Guyana road project sets financing and compliance conditions: eligible exports under India's Foreign Trade Policy may be financed, at least 75 per cent of contract value must be supplied from India with up to 25 per cent sourced abroad, and shipments must be declared on the Export Declaration Form. No agency commission payable from the LOC, but exporters may pay commission from their own funds or exchange-earner balances subject to realisation and remittance rules; AD Category-I banks must inform exporters and obtain LOC details from Exim Bank.

Government-backed line of credit enables export financing for maritime procurement with Indian sourcing and compliance obligations.
A Government of India supported Line of Credit from Exim Bank to Guyana finances an ocean ferry and eligible exports under the Foreign Trade Policy, requiring at least 75% Indian supply and permitting up to 25% foreign procurement. The LOC is effective from March 2017 with a 60 month terminal utilization period post completion; shipments must be declared on the Export Declaration Form. No agency commission is payable under the LOC, though exporters may remit commission from their own resources or EEFC balances subject to realization and extant rules; AD Category I banks must inform exporters and facilitate compliance. Directions are issued under FEMA.

Government-backed line of credit sets export content, shipment declaration, and commission payment rules for project financing.
Exim Bank's Government backed Line of Credit to Tanzania for Zanzibar's water supply conditions exports by requiring at least 75 per cent of contract value to be supplied from India, permitting up to 25 per cent sourcing abroad, mandating declaration of shipments on the Export Declaration Form, restricting agency commission payments to exporters' own funds or Exchange Earners' Foreign Currency Accounts after full realisation, and imposing a terminal utilisation period measured from project completion.

Line of credit to support reconstruction: supply content rules, utilization period, export declaration and commission constraints apply.
Export-Import Bank of India has provided a Government of India supported Line of Credit to Nepal for reconstruction projects, effective February 24, 2017, requiring shipments to be declared on the Export Declaration Form and a terminal utilization period of sixty months after project completion. Contracts must have at least 75% of goods and services supplied from India (50% for civil works). No agency commission is payable under the LOC, though exporters may use their own resources or EEFC balances for commission payments; AD Category-I banks may permit such remittances after full realization and compliance.

Line of Credit terms require majority India-sourced supplies, EDF declarations and a multi-year terminal utilization period.
A Government of India supported Line of Credit to Sierra Leone finances a transmission line project, requiring eligible goods and services with at least 75 per cent sourced from India and the balance procured abroad; the LOC is effective from February 16, 2017, mandates Export Declaration Form shipment declarations, prescribes a multi-year terminal utilization period after project completion, disallows agency commission under the LOC while permitting exporter-paid commissions from own funds or EEFC balances subject to AD Category-I bank approval after full realization, and is issued under the Foreign Exchange Management Act, 1999.