ARTICLE
1 August 2025

RBI Relaxes Norms For FPIs Investing In Corporate Debt Securities Through General Route

AP
AZB & Partners

Contributor

AZB & Partners is one of India's premier law firms with 500+ lawyers and offices across the country. The firm was founded in 2004 with a clear purpose to provide reliable, practical and full–service advice to clients, across all sectors. Having grown steadily since its inception, AZB & Partners now has offices across Mumbai, Delhi, Bangalore, Pune and Chennai. We are recognized by most international publications for our legal expertise.
As per the Master Directions on Non-resident Investment in Debt Instruments dated January 7, 2025, the Foreign Portfolio Investors (‘FPIs') investing in corporate debt securities were bound by...
India Corporate/Commercial Law

As per the Master Directions on Non-resident Investment in Debt Instruments dated January 7, 2025, the Foreign Portfolio Investors ('FPIs') investing in corporate debt securities were bound by:

i. a short-term investment limit, wherein investments by FPIs in short term corporate debt securities, i.e., corporate debt securities with a residual maturity of up to one year, was restricted to a maximum of 30% of its total corporate debt investments; and

ii. a concentration limit, wherein investments by FPIs in corporate debt securities was limited to 15% of the prevailing investment in case of long term FPIs and 10% of the prevailing limit in case of other FPIs.

With an aim to provide greater ease of investments to FPIs, the RBI has, by way of a Circular dated May 8, 2025, withdrawn the requirement for investments for FPIs in corporate debt securities to comply with the short-term investment limit and concentration limit.

Originally Published 29 July 2025

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More