Permitting Foreign Portfolio Investors (FPI) to invest in Municipal Bonds
Summary
This circular permits Foreign Portfolio Investors to invest in municipal bonds in accordance with SEBI regulations. The permission is granted pursuant to RBI's earlier directive and SEBI (FPI) Regulations, 2014. Custodians are requested to notify their FPI clients about this new investment allowance.
Text
RBI vide A.P. (DIR Series) Circular No. 33 dated April 25, 2019 has permitted FPIs to invest in municipal bonds.
It is decided that in accordance with the provisions of Regulation 21(1)(p) of SEBI (Foreign Portfolio Investors) Regulations, 2014, FPIs are, henceforth, permitted to invest in municipal bonds.
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992.
Custodians are requested to bring the contents of this circular to the notice of their FPI clients.
Source: SecMarx — Permitting Foreign Portfolio Investors (FPI) to invest in Municipal Bonds. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.