Investments by Foreign Portfolio Investors in Government Securities – Amendments to the regulatory framework

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....tment in Debt Instruments) Directions, 2025 dated January 07, 2025 [hereinafter, 'Master Direction']; and A.P. (DIR Series) Circular No. 05 dated April 06, 2026. 2. At present, investments by Foreign Portfolio Investors (FPIs) in Government Securities through the General Route are subject to (i) short-term investment limit, (ii) security-wise limit, and (iii) concentration limit. On a review, and with a view to providing greater ease of investment to FPIs, it has been decided to withdraw the requirement for FPIs to comply with the above three limits, for their investments in Government securities under the General Route. 3. It has also been decided to merge the sub-categories of investment limits, viz., 'general' and 'long....

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....nstituents. 7. The directions contained in this Circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) without prejudice to permissions/approval, if any, required under any other law. Yours faithfully,   (Dimple Bhandia) Chief General Manager   Annex Sr. No Existing Directions Revised/Additional Directions Sub-clause (g) of clause (i) of paragraph 2 shall be omitted. (i) "Long-Term FPIs" shall mean Sovereign Wealth Funds, Multilateral Agencies, Pension / Insurance / Endowment Funds and foreign Central Banks. - Sub-clause (s) of clause (i) of paragraph 2 shall be omitted. (ii) "Short-term Investments" shall mean investment....

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....xceed 15 per cent of prevailing investment limit for each category in case of long-term FPIs and 10 per cent of prevailing investment limit for other FPIs. - The phrase "as well as the security-wise limit for investment in Central Government securities" shall be omitted from clause (vi) of paragraph 4.3. (vii) The Clearing Corporation of India Ltd. (CCIL) shall monitor the utilisation of the investment limits for FPI investment in Central Government Securities and State Government Securities as well as the security-wise limit for investment in Central Government Securities. The Clearing Corporation of India Ltd. (CCIL) shall monitor the utilisation of the investment limits for FPI investment in Central Government Securities a....