BENGALURU (Reuters) -India’s central bank said on Thursday it has decided to withdraw short-term investment and concentration limits for foreign portfolio investors (FPIs) in corporate debt securities, in a move aimed at boosting foreign inflows.
Previously, short-term investment cap required FPI’s investments in corporate debt with maturity of up to one year to not exceed 30% of total investment by them, and concentration limit required that FPI investment not exceed 15% of prevailing investment limit in case of long term FPIs and 10% for other FPIs.
Investment limit for FPIs in corporate bonds was at 8.22 trillion rupees for April to September and 8.81 trillion rupees for October to March, RBI said in a release in April.
(Reporting by Nishit Navin; Editing by Shailesh Kuber)
