RBI lifts cap on FPI investments in corporate bonds

The Reserve Bank of India (RBI) has withdrawn the 20 per cent limit on investments by foreign portfolio investors (FPIs) in corporate bonds of an entity with a view to encouraging more foreign investments.The Securities and Exchange Board of India (SEBI) also notified this recently. Earlier, in April 2018, as part of the review of FPI investment in corporate debt, it had been stipulated that no FPI should have an exposure of more than 20 per cent of its corporate bond portfolio to a single corporate (including exposure to entities related to the corporate).

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