MANU/APDR/0017/2016

Ministry : Reserve Bank of India

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

Circular No. : A. P. (DIR Series) Circular No. 55
                   RBI/2015-2016/348

Date : 29.03.2016

Notification/ Circulars Referred : Notification No. FEMA.20/2000- RB dated May 3, 2000 MANU/RFEM/0012/2000;A.P. (DIR Series) Circular No 19 dated October 6, 2015 MANU/APDR/0078/2015

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

A.P. (DIR Series) Circular No 19 dated October 6, 2015 MANU/APDR/0078/2015  Referred

To,

All Authorised Persons

Madam/ Sir,

Investment by Foreign Portfolio Investors (FPI) in Government Securities

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. The limits for investment by foreign portfolio investors (FPI) in Government securities were last increased in terms of the Medium Term Framework (MTF) announced vide A.P. (DIR Series) Circular No 19 dated October 6, 2015.

2. As announced in the MTF, the limits for investment by FPIs in Central Government Securities for the next half year are proposed to be increased in two tranches, i.e., by Rs. 105 billion from April 4, 2016 and by Rs.100 billion from July 5, 2016 respectively.

3. As in the previous half-year, the limits for State Development Loans (SDL) are proposed to be increased in two tranches, each of Rs.35 billion, from April 4, 2016 and July 5, 2016 respectively.

4. The total increase in limits over the next........