Published 21:04 IST, July 29th 2024
RBI excludes 14-year and 30-year tenor G-Secs from FAR for foreign investors
Following a review and in consultation with the government, the RBI decided to exclude all new securities of these tenors from the FAR.
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The Reserve Bank of India (RBI) announced on Monday the exclusion of government securities (G-Secs) with 14-year and 30-year tenors from the Fully Accessible Route (FAR) for foreign portfolio investors (FPIs).
Following a review and in consultation with the government, the RBI decided to exclude all new securities of these tenors from the FAR. Consequently, future issuances of G-Secs in 14-year and 30-year tenors will not be available for investment under the FAR.
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"Existing stocks of Government Securities in 14-year and 30-year tenors already included as 'specified securities' under the Fully Accessible Route shall, however, continue to be available under the Fully Accessible Route for investments by non-residents in the secondary market," the RBI stated in a notification.
According to the RBI's April calendar, the FPI limit for G-Sec General is set at Rs 2,67,890 crore and Rs 1,36,890 crore for the G-Sec Long Term category for the current fiscal year.
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Currently, all investments by eligible investors in the 'specified securities' are accounted for under the Fully Accessible Route. The limit for FPI investment in government securities is 6 per cent of outstanding stocks of securities for the current fiscal year.
(With PTI inputs)
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21:04 IST, July 29th 2024