 "\"After a prolonged period of stress, the banking sector appears to be on course to recovery as the load of impaired assets recedes\" Shaktikanta Das, RBI Governor")
The Reserve Bank of India (RBI) on Thursday relaxed the provision that Foreign Portfolio Investors (FPI) can't have an exposure of more than 20% of its corporate bond portfolio to a single corporate.
In April 2018, the government had restricted an FPI’s investment in a single corporate bond to 50 per cent of the bond issue.
Moreover, the exposure to any single corporate group was mandated to not exceed 20 per cent of an FPI's overall corporate bond portfolio. They were allowed to invest in debt papers with less than three-year maturities, provided the total investment in debt papers maturing
