MANU/APDR/0090/2015
Ministry : Reserve Bank of India
Department/Board : RBI A.P. DIR (Series)
Circular No. : A. P. (DIR Series) Circular No. 31
RBI/2015-2016/253
Date : 26.11.2015
Notification/ Circulars Referred : Notification No. FEMA.20/2000- RB dated May 3, 2000 MANU/RFEM/0012/2000;A.P. (DIR Series) Circular No. 71 dated February 3, 2015 MANU/APDR/0017/2015;A. P. (DIR Series) Circular No.73 dated February 6, 2015 MANU/APDR/0019/2015
Citing Reference:
Notification No. FEMA.20/2000- RB dated May 3, 2000 MANU/RFEM/0012/2000 Referred
A.P. (DIR Series) Circular No. 71 dated February 3, 2015 MANU/APDR/0017/2015 Referred
A. P. (DIR Series) Circular No.73 dated February 6, 2015 MANU/APDR/0019/2015 Referred
To
All Authorised Persons
Madam/ Sir,
Investment by Foreign Portfolio Investors in Corporate Bonds
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. 71 dated February 3, 2015 and A. P. (DIR Series) Circular No.73 dated February 6, 2015 in terms of which all future investments by Foreign Portfolio Investors (FPI) in NCDs/bonds shall be required to be made in securities with a minimum residual maturity of three years.
2. On a review, it has been decided to permit FPI to acquire NCDs/bonds, which are under default, either fully or partly, in the repayment of principal on maturity or principal installment in the case of amortising bond. The revised maturity period of such NCDs/bonds, restructured based on negotiations with the issuing Indian company, should be three years or more.
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