The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) released circulars on 15 June 2018 reviewing the requirements for investment by foreign portfolio investors (FPIs) in debt securities. Both the circulars mandated that no FPI was permitted to have an exposure of more than 20% of its corporate bond portfolio in a single company (including exposure to its group companies).
In order to encourage a wider spectrum of investors to access the Indian corporate debt market, the RBI, through its circular dated 15 February 2019, has withdrawn this limit with immediate effect. To give effect to the RBI direction, SEBI, through its circular dated 12 March 2019, also withdrew the requirement stipulated in its circular dated 15 June 2018.
