Limits for investment in debt and sale of Credit Default Swaps by Foreign Portfolio Investors (FPIs) for the financial year (FY) 2022-23

1] The limits for FPI investment in Government securities (G-secs), State Development Loans (SDLs) and corporate bonds shall remain unchanged at 6%, 2% and 15% respectively, of outstanding stocks of securities for FY 2022-23.

2] All investments by eligible investors in the ‘specified securities’ shall be reckoned under the Fully Accessible Route (FAR)
The allocation of incremental changes in the G-sec limit (in absolute terms) over the two sub-categories – ‘General’ and ‘Long-term’ – shall be retained at 50:50 for FY 2022-23

3] The entire increase in limits for SDLs (in absolute terms) has been added to the ‘General’ sub-category of SDLs

4] The aggregate limit of the notional amount of Credit Default Swap sold by FPIs shall be 5% of the outstanding stock of corporate bonds.  Accordingly, an additional limit of INR 2,22,623 crore is set out for FY 2022-23
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