Reserve Bank of India relaxes norms for FPI investment in bonds

FPIs had lobbied with the RBI and finance ministry, as well as the Securities and Exchange Board of India (Sebi), that a huge lot of NCD issuance was stuck because of RBI rules

The Reserve Bank of India (RBI) on Friday relaxed its April notification, which forbade FPIs from investing more than 20 per cent of their portfolios in bonds issued by a single corporate group.

While the regulations remained the same as mentioned in April, the central bank said FPIs could carry on with transactions committed till April 27, when the notification came. In the April 27 notification, the central bank had said an FPI, or its entities, could not have more than 50 per cent of investment in a single corporate bond and their portfolios could not take more than a