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RBI withdraws 20% limit on investments by FPIs in corporate bonds

The RBI said the directions in this regard have been issued the Foreign Exchange Management Act

Press Trust of India  |  Mumbai 

RBI
Reserve Bank of India

The (RBI) on Friday withdrew the 20 per cent limit on investments by FPIs in of an entity with a view to encourage more

As part of the review of the in undertaken in April 2018, it was stipulated that no FPI should have an exposure of more than 20 per cent of its to a single corporate (including exposure to entities related to the corporate).

While the provision was aimed at incentivising FPIs to maintain a portfolio of assets, market feedback indicates that (FPIs) have been constrained by this stipulation, the RBI said.

"...in order to encourage a wider spectrum of investors to access the Indian market, it has been decided to withdraw this provision with immediate effect," the central bank said.

The RBI said the directions in this regard have been issued the

First Published: Fri, February 15 2019. 18:35 IST
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