The banking regulator has left the investment limits on foreign portfolio investors unchaged for 2024-25.
The cap on investment in government securities has been retained at 6 per cent.
The ceiling on investment in state development loans stays at 2 per cent while the cap on investment in corporate bonds will remain 15 per cent.
The FPIs can also invest in certain specified securities that fall in the fully accessible category (FAR). This facility was introduced in 2020 which attracts no restrictions on FPI investment. As of now, all investments by eligible investors in the ‘specified securities’ will be reckoned under the FAR, the RBI said in a notification.
The announcement comes at a time FPI investment in government securities has started to rise ahead of India’s inclusion in the JP Morgan Emerging Market Index.
According to NSDL data, FPIs have poured ₹45,218 crore into debt in this calendar year. This is 10 times the net investment into equities which stands at ₹4,589 crore.
