{"id":367,"date":"2018-04-09T12:07:47","date_gmt":"2018-04-09T06:37:47","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=367"},"modified":"2018-04-12T13:11:38","modified_gmt":"2018-04-12T07:41:38","slug":"rbi-raises-fpis-debt-investment-limits-for-foreign-portfolio-investors-fpi","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/rbi-raises-fpis-debt-investment-limits-for-foreign-portfolio-investors-fpi\/","title":{"rendered":"RBI Raises FPI\u2019s Debt Investment Limits for foreign portfolio investors (FPIs)"},"content":{"rendered":"<ul style=\"text-align: justify;\">\n<li>The <strong>Reserve Bank of India (RBI)<\/strong> has raised the debt investment limits for <strong>foreign portfolio investors (FPIs)<\/strong> across all segments, including central <strong>government securities (G-secs)<\/strong>.This would lead to a cumulative increase of over Rs 1 lakh crore through Financial year 2018-19.<\/li>\n<li>Though the hike in limit for <strong>G-secs<\/strong> \u2014 0.5 per cent each year to 5.5 per cent of the outstanding stock in FY19 and 6 per cent of the stock in FY20 \u2014 was a bit lower than market expectations, analysts felt the move would help bring down the yields further at least in the short term.<\/li>\n<li>The RBI\u2019s decision could also ease pressure on local banks to support the government\u2019s borrowing programme and free up liquidity to support an incipient investment cycle.<\/li>\n<li>Currently, the FPI limit for general category G-sec investors stands at Rs 1.91 lakh crore; this has been raised to Rs 2.07 lakh crore for the first half of FY19 and further to Rs 2.23 lakh crore for H2FY19. For long-term FPI investors, the limit has been increased to Rs78,700 crore for the first half of FY19 and to Rs 92,300 crore for the second half of FY19.<\/li>\n<li>Coupon reinvestment by FPIs in <strong>G-secs<\/strong>, which was hitherto outside the investment limit, will now be reckoned within the G-sec limits. No fresh allocation has been made to the \u2018long-term\u2019 sub-category under <strong>state development loans (SDLs)<\/strong>, the RBI said.<\/li>\n<li>Out of the existing limit of Rs 13,600 crore for this subcategory (SDLs), an amount of Rs 6,500 crore has been transferred to the G-secs category.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>\u00a0<\/strong><strong>Source:Economic Times<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Reserve Bank of India (RBI) has raised the debt investment limits for foreign portfolio investors (FPIs) across all segments,<\/p>\n","protected":false},"author":1,"featured_media":368,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[240,136,291,138,241,237,238,242,203,239],"class_list":["post-367","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-miscellaneous","tag-banking","tag-current-affairs","tag-daily-current-affairs","tag-economy","tag-finance","tag-foreign-portfolio-investors-fpis","tag-government-securities-g-secs","tag-investment","tag-reserve-bank-of-india-rbi","tag-state-development-loans-sdls"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/367","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=367"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/367\/revisions"}],"predecessor-version":[{"id":369,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/367\/revisions\/369"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/368"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}