Relaxation of Time Limits for Debt Investments under Voluntary Retention Route by FPIs

The Circular dated May 24, 2019, issued by the RBI required FPIs to invest at least 75% of their committed portfolio size (‘CPS’) under the Voluntary Retention Route (VRR) within 3 months from the date of allotment of the CPS. By way of Circular dated May 22, 2020, due to disruptions caused by the COVID-19 pandemic, the RBI has granted an additional period of 3 months to FPIs that were allotted investment limits between January 24, 2020 (the date of reopening of allotment of investment limits) and April 30, 2020, to invest 75% of their CPS. It is pertinent to note that for the FPIs who avail such additional time, the retention period for investments (committed by them at the time of allotment of investment limit) would be reset to commence from the date that such FPI invests 75% of its CPS.

Published In:Inter Alia - Quarterly Edition - June 2020 [ English
Date: June 30, 2020