 "Illustration by Ajay Mohanty")
The Reserve Bank of India (RBI) is planning to provide relief to foreign portfolio investors (FPIs) on some of the new norms proposed in its April 27 circular.
As per the new norms, an FPI cannot invest more than 20 per cent of its portfolio in papers that have maturity below one year.
In this regard, the central bank is considering grandfathering of existing investment since the law has currently been applied retrospectively. Grandfathering refers to a practice in which old rules continue to apply till the date a new clause has been introduced.
The restriction that an FPI cannot
