RBI reluctant to change FPI portfolio limits introduced last year

FPIs had felt the restrictions were too onerous and difficult to monitor, and wanted these to be done away with altogether

The Reserve Bank of India (RBI) is reluctant to relax portfolio-level limits it introduced for foreign portfolio investors (FPIs) last year.
 
In a meeting with about 50 FPIs and a few custodians on Monday the central bank said it did not want to tweak the existing regulations, said sources in the sector.
 
The RBI has instead asked investors to look at the voluntary retention route (VRR) — a new channel currently in the works to enable FPIs to invest in debt markets in India — to bypass existing restrictions.
 
In April 2018, the government introduced these restrictions