Investment by Foreign Portfolio Investors (FPI) in Debt - Review

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....6, 2018, the 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maturity requirement for Central Government securities (G-secs) and State Development Loans (SDLs) categories stands withdrawn, subject t....

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....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 (INV0) 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 (INV0) 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 (INVt) does not exceed INV0 plus 2.5% of investment limit fo....