FULLY ACCESSIBLE ROUTE’ FOR INVESTMENT BY NON-RESIDENT INDIANS IN GOVERNMENT SECURITIES
By INSOL India - Editorial Team Posted On : April 21, 2020
Reserve Bank of India by two circulars bearing No. RBI/2019-20/199 AP (DIRC) Circular No. 24 and No. RBI/2019-20/200 AP (DIRC) Circular No.25 has clarified and revised the limit of FDI in corporate bonds and applicability of investment limits in the Central Government Securities and State Development Loans. By the second circular No. 25/2020 only puts into effect the proposal made by the Finance Minister in the Budget Speech for certain specified categories of government securities to be fully open for investments by NRIs without any restrictions.
Consequently, investment in corporate bonds has been increased from 9% of the outstanding to 15% for the financial year 2020-21; making a gateway for more investments into the country.