MANU/APDR/0017/2015

Ministry : Reserve Bank of India

Department/Board : RBI A.P. DIR (Series)

Circular No. : A. P. (DIR Series) Circular No. 71
                   RBI/2014-2015/448

Date : 03.02.2015

Notification/ Circulars Referred : Notification No. FEMA.20/2000- RB dated May 3, 2000 MANU/RFEM/0012/2000;A.P. (DIR Series) Circular No. 13 dated July 23, 2014 MANU/APDR/0084/2014

Citing Reference:
Notification No. FEMA.20/2000- RB dated May 3, 2000 MANU/RFEM/0012/2000  Referred

A.P. (DIR Series) Circular No. 13 dated July 23, 2014 MANU/APDR/0084/2014  Referred

To,

All Authorised Persons

Madam/ Sir,

Foreign investment in India by Foreign Portfolio Investors.

Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to Schedule 5 to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA.20/2000- RB dated May 3, 2000, as amended from time to time and to A.P. (DIR Series) Circular No. 13 dated July 23, 2014 in terms of which all future investment in government securities by registered Foreign Portfolio Investors (FPIs) shall be required to be made in government bonds with a minimum residual maturity of three years.

2. Attention of AD Category-I banks is invited to the announcement in the Sixth Bi-Monthly Monetary Policy Statement, 2014-15, issued on February 03, 2015 in terms of which all future investment by FPIs in the debt market in India will be required to be made with a minimum residual maturity of three years.

3. Accordingly, all future investments by an FPI within the limit for investment in corporate bonds shall be required to be made in corporate bonds with a m........