RBI creates separate Rs 50 bn limit for foreign investors in IRF segment

After the utilisation limit in government bonds reaches 90%, as is the current situation, FPIs are not allowed to take position in IRFs

The Reserve Bank of India (RBI) on Thursday created a separate Rs 50 billion limit for foreign investors in the interest rate futures (IRF) segment.
 

At present, the IRF limit is clubbed with the investment limit in government bonds. After the utilisation limit in government bonds reaches 90 per cent, as is the current situation, FPIs are not allowed to take position in IRFs.

“To facilitate further market development and ensure that access of FPIs to IRFs remains uninterrupted, it has been decided to allocate FPIs a separate limit of Rs 50 billion for long position in IRFs,” RBI said in a notification on its website. “The limits prescribed for investment by FPIs in G-secs (currently Rs 3.015 trillion) will be exclusively available for investment in G-secs,” it added.