Rupee Bonds
Excluded from FPI Limits
[Ref: A.P. (DIR Series) Circular No. 06
(RBI/2017-18/65) dated
September 22, 2017]
Subject: Issuance of Rupee Denominated Bonds
(RDBs) Overseas
Attention of Authorized Dealer Category
- I
(AD Category - I) banks is invited to the provisions contained in paragraphs 2 and 8 of
A.P. (DIR Series) Circular No.60
dated April 13, 2016 on issuance of Rupee denominated bonds overseas and paragraphs 3.2
and 3.3.9 of Master
Direction No.5
dated January
1, 2016
on “External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign
Currency by Authorised
Dealers and Persons other than Authorised Dealers”, as amended from time to time.
2. It has been decided, in consultation with the Government
of
India, to exclude issuances of RDBs from the limit for investments by FPIs in corporate bonds with effect from October 3, 2017 vide
A. P. (DIR Series) Circular No. 05 dated September
3. Consequently, reporting requirement in terms of paragraph 8 (additional email reporting of RDB transactions for onward reporting to depositories) of A.P. (DIR Series) Circular No. 60 dated April 13, 2016 has been dispensed with. However, it should be noted that the reporting of RDBs will continue as per
the
extant ECB
norms.
4. All other
aspects of the ECB policy remain unchanged. AD
Category -
I banks may bring the contents of this
circular to the notice of their constituents
and
customers.
5. The aforesaid Master Direction No. 5 dated January 01, 2016 will be updated to
reflect the changes.
6. The directions contained in this circular have been issued under section 10(4) and
11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without
prejudice to permissions / approvals, if any, required under
any other
law.