RBI Excludes 14-Year And 30-Year G-Secs From Fully Accessible Route For FPIs

The Reserve Bank of India has announced the exclusion of government securities with 14-year and 30-year tenors from the Fully Accessible Route for foreign portfolio investors. This decision follows a review and consultation with the government.

Under the new guidelines, future issuances of G-Secs with these tenors will not be available for investment under FAR.

However, existing securities of these tenors, that are already classified as ‘specified securities’ under FAR, will remain accessible to non-residents in the secondary market.

The RBI announcement affects the limits set for foreign portfolio investments in government securities.

For the current fiscal, the FPI limit is set at Rs 2,67,890 crore for general G-Secs and Rs 1,36,890 crore for long-term G-Secs.

Currently, all investments by eligible investors in ‘specified securities’ are considered under FAR.

The overall limit for FPI investments in government securities is 6% of the outstanding stock for this fiscal.

(With inputs from PTI)