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TMI BlogReview of Investment by Foreign Portfolio Investors (FPI) in DebtX X X X Extracts X X X X X X X X Extracts X X X X ..... velopment Loans (SDLs) and Corporate Debts. Further, vide circular No. CIR/IMD/FIIC/2/2015 dated February 5, 2015, SEBI enabled investment of coupons in G-Secs and related matters. Also, SEBI Circular No. CIR/IMD/FIIC/19/2014 dated October 09, 2014 prescribed the procedure to be followed in the implementation of the auction mechanism. 2. In accordance with RBI circular A.P. (DIR Series) Circular No. 31 dated June 15, 2018, the changes to operational aspects of FPI investment in debt are set forth below. 3. It has been decided to withdraw minimum residual maturity restriction of three years for investment by FPIs in G-Secs and SDLs. Further, the auction process being carried out by BSE/ NSE shall be discontinued from the date of this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n place the necessary systems for the online monitoring of the investment limits This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992. A copy of this circular is available at the web page Circulars on our website www.sebi.gov.in. Custodians are requested to bring the contents of this circular to the notice of their FPI clients. Yours faithfully, ACHAL SINGH Deputy General Manager Tel No.: 022-26449619 Email: [email protected] Annexure Revised requirements for FPIs investments in corporate debt securities 1) Minimum residual maturity a) Till date, FPIs were required to invest in corporate bonds with a minim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments (INV0) in excess of the concentration limit on the effective date (date on which these concentration limits come into existence as prescribed by RBI), it will be allowed the following relaxations, subject to availability of overall limits, as a one-time measure: a) In case an FPI has investments (INV0) in excess of the concentration limit on the effective date, it will be allowed to undertake additional investments such that its portfolio size at the end of any day (INVt) does not exceed INV0 plus 2.5% of investment limit on the effective date. Once INVt falls below the prevailing concentration limit, the FPI shall be free to make investments up to the applicable concentration limit. b) In case an FPI has investments (INV0) with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20% to any corporate (including exposure to entities related to the corporate), it shall not make further investments in that corporate until this stipulation is met. b) Investments made (other than those referred to in para 3(ii)(a)) by FPI after the date prescribed by RBI would be exempted from this requirement till March 31, 2019. These investments will, however, have to comply with this requirement thereafter. c) To facilitate newly registered FPIs to build up a diversified portfolio, FPIs registering after the date prescribed by RBI are permitted to comply with this requirement by March 31, 2019, or six months from the date of registration, whichever is later. (iii) For the purpose of these stipulations, entities related to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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