RBI maintains status quo on FPI investment limits in G-Secs, state development loans

MUMBAI: The Reserve Bank of India on Monday said the limits for foreign portfolio investors (FPI) investment during the current fiscal in government securities (G-secs) and State Development Loans (SDLs) will remain unchanged at 6 per cent and 2 per cent respectively, of outstanding stocks of securities for 2021-22.

In a circular, the RBI said the allocation of incremental changes in the G-sec limit (in absolute terms) over the two sub-categories – ‘General’ and ‘Long-term’ – will be retained at 50:50 for FY 2021-22.

Also, the entire increase in limits for SDLs (in absolute terms) has been added to the ‘General’ sub-category of SDLs, said the circular on ‘Investment by Foreign Portfolio Investors (FPI) in Government Securities: Medium Term Framework (MTF)’.

The FPI limit in G-Sec General, G-Sec Long Term, SDL General, SDL Long Term, and Corporate Bonds, was Rs 9,54,280 crore as on March 31, 2021.

The revised limit (in absolute terms) for April 2021-September 2021 period is Rs 10,14,957 crore, including Rs 2,43,914 crore for G-sec General and Rs 5,74,263 crore for Corporate Bonds.

The FPI investment limit in the debt instruments for October 2021 – March 2022 period is Rs 10,75,637 crore.