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            Relevant changes in the Regulatory Framework

            Regulations from the Securities and Exchange Board of India (SEBI) and other regulatory bodies Changes in the conditions prescribed for FPI investments in government debt securities

            (SEBI Circular No.CIR/IMD/FIIC/2/2015 dated 5 February 2015 and RBI Circular No. RBI/2014- 15/453 A.P (DIR Series) Circular No.72 dated 5 February 2015)

            In accordance with the announcements made by the Reserve Bank of India (RBI) in the sixth bi-monthly monetary policy statement (2014-15), the following has been decided:

            – Investments of coupons (viz. interest) in government securities will be enabled even when the existing limits for FPIs are fully utilised
            – FPIs shall be permitted to invest in government securities. Further, FPIs shall receive coupons against their investments in government securities. Such investments shall be kept outside the applicable limit (currently US$ 30 billion) for investments by FPIs in government securities
            – For the purpose of investment of coupons, the FPIs shall have an investment period of five working days from the date of receipt of the coupon. Government securities that have been purchased by utilising the coupons can be reinvested within five working days. All other existing conditions with regards to investment in government securities market, applicable to FPIs, would remain unchanged for this additional facility of reinvestment of coupons. It is further clarified that the same regulations will be applicable to coupons received on those government securities that are purchased through the investment of coupons
            – The coupons invested to purchase government securities shall be listed under a separate investment category, which is over and above the US$ 30 billion government debt limit

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