Review of Investment by Foreign Portfolio Investors (FPI) in Debt Securities
Summary
This circular withdraws the previous restriction limiting FPI exposure to a single corporate entity in debt securities to 20% of their portfolio. It clarifies that FPIs must comply with all RBI directions regarding investment conditions for corporate debt securities without separate SEBI circulars. Non-compliance with these RBI requirements will result in regulatory action under SEBI (FPI) Regulations, 2014.
Text
RBI has withdrawn the provision w.r.t. exposure of more than 20% of FPI's corporate bond portfolio to a single corporate with immediate effect.
The said provision in SEBI Circular dated June 15, 2018 stands withdrawn with immediate effect.
All circulars and directions issued by RBI w.r.t investment conditions for FPI Investment in corporate debt securities shall be complied with as per the timelines specified in the RBI circular(s).
No separate circular(s) shall be issued by SEBI. All the intermediaries may take steps required to operationalize the RBI Circular(s).
Any non-compliance with the requirements prescribed by RBI from time to time w.r.t. corporate debt securities shall be liable for action in terms of SEBI (Foreign Portfolio Investors) Regulations, 2014.
Source: SecMarx — Review of Investment by Foreign Portfolio Investors (FPI) in Debt Securities. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.