{"id":882,"date":"2025-04-03T18:20:00","date_gmt":"2025-04-03T18:20:00","guid":{"rendered":"https:\/\/jbco.co.in\/limits-for-investment-in-debt-and-sale-of-credit-default-swaps-by-foreign-portfolio-investors-fpis\/"},"modified":"2025-04-03T18:20:00","modified_gmt":"2025-04-03T18:20:00","slug":"limits-for-investment-in-debt-and-sale-of-credit-default-swaps-by-foreign-portfolio-investors-fpis","status":"publish","type":"post","link":"https:\/\/jbco.co.in\/?p=882","title":{"rendered":"Limits for investment in debt and sale of Credit Default Swaps by Foreign Portfolio Investors (FPIs)"},"content":{"rendered":"\n\n
\n

RBI\/2025-26\/20
A.P. (DIR Series) Circular No. 01<\/p>\n

April 03, 2025<\/p>\n

To,
All Authorized Persons<\/p>\n

Madam \/ Sir<\/p>\n

Limits for investment in debt and sale of Credit Default Swaps by Foreign Portfolio Investors (FPIs)<\/p>\n

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 1 to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified vide Notification No. FEMA. 396\/2019-RB dated October 17, 2019<\/a> as amended from time to time and the relevant Directions issued thereunder.<\/p>\n

2. Reference is also invited to the following directions issued by the Reserve Bank: <\/p>\n

    \n
  1. \n

    A.P. (DIR Series) Circular No. 23 dated February 10, 2022<\/a>;<\/p>\n<\/li>\n

  2. \n

    A.P. (DIR Series) Circular No. 03 dated April 26, 2024<\/a>; and<\/p>\n<\/li>\n

  3. \n

    Master Direction – Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 dated January 07, 2025<\/a>.<\/p>\n<\/li>\n<\/ol>\n

    3. Investment Limits for the financial year 2025-26:<\/p>\n

    a) The limits for FPI investment in Government Securities (G-Secs), State Government Securities (SGSs) and corporate bonds shall remain unchanged at 6 per cent, 2 per cent and 15 per cent respectively, of the outstanding stocks of securities for 2025-26.<\/p>\n

    b) As hitherto, all investments by eligible investors in the \u2018specified securities\u2019 shall be reckoned under the Fully Accessible Route (FAR) in terms of Master Direction – Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 dated January 07, 2025<\/a>.<\/p>\n

    c) The allocation of incremental changes in the G-Sec limit (in absolute terms) over the two sub-categories \u2013 \u2018General\u2019 and \u2018Long-term\u2019 \u2013 shall be retained at 50:50 for 2025-26.<\/p>\n

    d) The entire increase in limits for SGSs (in absolute terms) has been added to the \u2018General\u2019 sub-category of SGSs.<\/p>\n

    4. The revised limits (in absolute terms) for the different categories, are in Table 1<\/a>:<\/p>\n\n\n\n\n\n\n\n
    <\/a>Table – 1: Investment limits for FY 2025-26<\/td>\n<\/tr>\n
    all figures in \u20b9 Crore<\/td>\n<\/tr>\n
    \u00a0<\/td>\nG-Sec General<\/td>\nG-Sec Long Term<\/td>\nSGS General<\/td>\nSGS Long Term<\/td>\nCorporate Bonds<\/td>\nTotal Debt<\/td>\n<\/tr>\n
    Current FPI limits <\/td>\n2,68,984<\/td>\n1,37,984<\/td>\n1,17,752<\/td>\n7,100<\/td>\n7,63,503<\/td>\n12,95,323<\/td>\n<\/tr>\n
    Revised limit for the HY Apr 2025-Sept 2025<\/td>\n2,79,236<\/td>\n1,48,236<\/td>\n1,26,248<\/td>\n7,100<\/td>\n8,22,169<\/td>\n13,82,989<\/td>\n<\/tr>\n
    Revised limit for the HY Oct 2025-Mar 2026<\/td>\n2,89,488<\/td>\n1,58,488<\/td>\n1,34,744<\/td>\n7,100<\/td>\n8,80,835<\/td>\n14,70,654<\/td>\n<\/tr>\n<\/table>\n

    5. In terms of A.P. (DIR Series) Circular No. 23 dated February 10, 2022<\/a>, the aggregate limit of the notional amount of Credit Default Swaps sold by FPIs shall be 5 per cent of the outstanding stock of corporate bonds. Accordingly, an additional limit of \u20b92,93,612 crore is set out for 2025-26. <\/p>\n

    6. AD Category \u2013 I banks may bring the contents of this circular to the notice of their constituents and customers concerned.<\/p>\n

    7. The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) without prejudice to permissions\/approval, if any, required under any other law. <\/p>\n

    Yours faithfully<\/p>\n

    (Dimple Bhandia)
    Chief General Manager<\/p>\n<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

    RBI\/2025-26\/20 A.P. (DIR Series) Circular No. 01 April 03, 2025 To, All Authorized Persons Madam \/ Sir Limits for investment in debt and sale of Credit Default Swaps by Foreign Portfolio Investors (FPIs) Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 1 to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-882","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/posts\/882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jbco.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=882"}],"version-history":[{"count":0,"href":"https:\/\/jbco.co.in\/index.php?rest_route=\/wp\/v2\/posts\/882\/revisions"}],"wp:attachment":[{"href":"https:\/\/jbco.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jbco.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jbco.co.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}