RBI revises FPI debt limit under Voluntary Retention Route, opens ‘on tap’ allotment
28 May 2019
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Reserve Bank of India (RBI) has revised the investment limit for foreign portfolio investors (FPIs) under the Voluntary Retention Route (VRR–Combined category) which allows investment in both government securities and corporate debt, to Rs54,606.55 crore.
The minimum retention period shall be three years. During this period, FPIs shall maintain a minimum of 75 per cent of the allocated amount in India.
Investment limits shall be available ‘on tap’ and allotted on ‘first come, first served’ basis.
The ‘tap’ shall be kept open till the limit is fully allotted or till 31 December 2019, whichever is earlier.
FPIs may apply for investment limits online to Clearing Corporation of India Ltd. (CCIL) through their respective custodians.
CCIL will separately notify the operational details of application and allotment.
FPIs that were allotted investment limits under the tap that was open during 11 March-30 April 2019, may, at their discretion, opt to convert their full allotment to ‘VRR-Combined’ by advising CCIL through their custodians. Such conversions shall not use up the investment limit of Rs54,606.55 crore, RBI said.
