For 2024–2025, the RBI does not alter the investment limitations for foreign portfolio investors
The foreign portfolio investor investment restrictions have not been altered by the banking regulator for the years 2024–2025.
The six percent investment limit on government securities has remained in place.
The restriction on corporate bond investments will continue at 15%, while the bar on state development loan investments remains at 2%.
Additionally, the FPIs may invest in certain assets that are included in the fully accessible category (FAR). Introduced in 2020, this facility allows FPI investment with no limits. The RBI said in a statement that as of right now, all investments made by qualified investors in the “specified securities” would be treated in accordance with the FAR.
The announcement is made at a point in time when FPI investments in government bonds are beginning to increase before India gets included in the JP Morgan Emerging Market Index.
FPIs have invested ₹45,218 crore into debt this year, according to NSDL statistics. This is ten times the ₹4,589 crore net investment in stocks.
