As per the latest notification by Reserve Bank Of India (RBI), now foreign institutional investors (FIIs) will be allowed to invest upto 25 billion USDs in bonds and debentures of Indian infrastructure companies which was earlier limited for upto 5 billion USDs.
Foreign institutional investors (FIIs), which are registered with securities and exchange board of India (SEBI) would also be allowed to invest in non-convertible debentures (NCDs) and bonds issued by non banking companies categorized as ‘Infrastructure Finance Companies (IFCs) by RBI.
“The lock-in-period of three years for FII investment stands reduced to one year up to an amount of USD 5 billion within the overall limit of USD 25 billion. This lock-in-period shall be computed from the time of first purchase by FIIs.”
These changes would also apply for QFI investment in units of mutual fund debt schemes within the limit of 3 billion USDs.