FPI Investment Limit in Corporate Bond Increased to 15% i.e. by Rs. 4.49 lakh crores

G-Sec and SDLs (State Development Loans) Hiked, Limit to be Advised Shortly

[A.P.(DIR Series) Circular No.24 (RBI/2019-20/199) dated March 30, 2020]

Sub: Investment by Foreign Portfolio Investors (FPI): Investment limits

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 1 to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified vide Notification No.FEMA.396/2019-RB dated October 17, 2019, as amended from time to time and the relevant directions issued thereunder. A reference is also invited to A.P. (DIR Series) Circular No. 26 dated March 27, 2019 on the captioned subject.

2. Investment Limits for FY 2020-21

a. The limit for FPI investment in corporate bonds is increased to 15% of outstanding stock for FY 2020-21. Accordingly, the revised limits for FPI investment in corporate bonds, after rounding off, shall be as under (Table - 1):

Table-1: Limits for FPI investment in corporate bonds for FY 2020-21


(₹ Crore)

Current FPI limit


Revised limit for HY Apr 2020-Sep 2020


Revised limit for HY Oct 2020-Mar 2021


b. The revised limits for FPI investment in Central Government securities (G-secs) and State Development Loans (SDLs) for FY 2020-21 will be advised separately. Till such time, the current limits (as in Table - 2), shall continue to be applicable.

Table-2: Limits for FPI investments in G-Sec and SDL

(₹ Crore)


G-Sec General

G-Sec Long Term

SDL General

SDL Long Term

FPI investment limits





3. AD Category–I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

4. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approval, if any, required under any other law.