Jun 30, 2022Investment Limits for FPIs
The RBI has issued a Circular dated April 19, 2022, pursuant to which the following investment limits have been set for Foreign Portfolio Investors (‘FPIs’) for the FY 2022-23:
i. The limits for FPI investment in Government securities (‘G-sec’), State Development Loans (‘SDLs’) and corporate bonds remain unchanged at 6%, 2% and 15%, respectively, of outstanding stocks of securities for the FY 2022-23;
ii. All investments by eligible investors in ‘specified securities’ must be reckoned under the fully accessible route in terms of the RBI Circular no. 25 dated March 30, 2020;
iii. The allocation of incremental changes in the G-sec limit (in absolute terms) over the two sub-categories e., ‘General’ and ‘Long Term’ will be retained at 50:50 for the FY 2022-23; and
iv. The entire increase on limits for SDLs (in absolute terms) has been added to the ‘General’ sub-category of SDLs.
The revised limits (in absolute terms) for the different categories are as follows:
| All figures are in INR crores | ||||||
| G-Sec General | G-Sec Long Term | SDL General | SDL Long Term | Corporate Bonds | Total Debt | |
| Current FPI Limits | 253,298 | 122,298 | 85,902 | 7,100 | 607,039 | 1,075,637 |
| Revised Limit for April – September 2022 | 260,594 | 129,594 | 89,365 | 7,100 | 637,455 | 1,124,107 |
| Revised Limit for October 2022 – March 2023 | 267,890 | 136,890 | 92,828 | 7,100 | 667,871 | 1,172,578 |
The aggregate limit of the notional amount of credit default swap sold by FPIs will be 5% of the outstanding stock of corporate bonds. Accordingly, an additional limit of INR 222,623 crore (approx. US$ 28,024,095) is set out for FY 2022-23.