RBI Notification 20/2025 Dated 03/04/2025

Limits for investment in debt and sale of Credit Default Swaps by Foreign Portfolio Investors (FPIs): The limits for FPI investment in debt instruments for the financial year 2025-26, i.e. in Government Securities (G-Secs), State Government Securities (SGSs), and corporate bonds remain unchanged at 6%, 2%, and 15%, respectively, of the outstanding stock of these securities. The Fully Accessible Route (FAR) will continue to govern investments in specified securities. For the fiscal year, the incremental G-Sec limit has been evenly split between the ‘General’ and ‘Long-term’ sub-categories. Meanwhile, all additional limits for SGSs have been allocated to the ‘General’ sub- category. It also specifies that FPIs can sell Credit Default Swaps (CDS) up to 5% of the total outstanding corporate bond stock. (RBI Notification 20/2025 Dated 03/04/2025)

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