RBI Removes Investment Limits for FPIs in Corporate Debt
The Reserve Bank of India (RBI) has recently issued a circular regarding the investments made by the Foreign Portfolio Investors (FPIs) in Corporate Debt Securities through the General Route. The guidelines stated in the circular are aimed at making it easier for Foreign Portfolio Investors (FPIs) to invest in Indian corporate debt.
Until now, there were short-term investment limit and a concentration limit for FPIs investing through the General Route. The RBI has decided to remove both these requirements. The goal of this move is to provide more flexibility and ease for foreign investors. The foreign investors do not need to comply with the short-term investment limit and the concentration limit.
In the circular (RBI/2025-26/35), dated May 8, 2025, RBI stated, “At present, investments by Foreign Portfolio Investors (FPIs) in corporate debt securities through the General Route are subject to the short-term investment limit and the concentration limit as prescribed in paragraphs 4.4(iii) and 4.4(v) of the Master Direction, respectively. On a review, and with a view to providing greater ease of investment to FPIs, it has been decided to withdraw the requirement for investments by FPIs in corporate debt securities to comply with the short-term investment limit and the concentration limit.”
The changes mentioned in the circular are effective immediately.
Refer to the official circular for more information.