| Notification Detail :
RBI/2025-26/20
A.P. (DIR Series) Circular No. 01
April 03, 2025
To,
All Authorized Persons
Madam / Sir
Limits for investment in debt and sale of Credit Default Swaps by Foreign Portfolio Investors (FPIs)
Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 1 to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified vide Notification No. FEMA. 396/2019-RB dated October 17, 2019 as amended from time to time and the relevant Directions issued thereunder.
2. Reference is also invited to the following directions issued by the Reserve Bank:
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A.P. (DIR Series) Circular No. 23 dated February 10, 2022;
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A.P. (DIR Series) Circular No. 03 dated April 26, 2024; and
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Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 dated January 07, 2025.
3. Investment Limits for the financial year 2025-26:
a) The limits for FPI investment in Government Securities (G-Secs), State Government Securities (SGSs) and corporate bonds shall remain unchanged at 6 per cent, 2 per cent and 15 per cent respectively, of the outstanding stocks of securities for 2025-26.
b) As hitherto, all investments by eligible investors in the ‘specified securities’ shall be reckoned under the Fully Accessible Route (FAR) in terms of Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 dated January 07, 2025.
c) The allocation of incremental changes in the G-Sec limit (in absolute terms) over the two sub-categories – ‘General’ and ‘Long-term’ – shall be retained at 50:50 for 2025-26.
d) The entire increase in limits for SGSs (in absolute terms) has been added to the ‘General’ sub-category of SGSs.
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