RBI maintains the 6% of outstanding stocks FPI may invest in G-sec at the same level for FY25
Additionally, according to the RBI, the total notional amount of Credit Default Swaps offered by FPIs cannot exceed 5% of the outstanding stock of corporate bonds.
On April 26, the Reserve Bank of India (RBI) maintained the 6 percent of outstanding securities stocks cap for 2024–25 for Foreign Portfolio Investors (FPI) investments in government securities.
Additionally, the central bank said in a statement that it would keep the Federal Reserve's maximum allowable interest rate (FPI) for investments in corporate bonds and state government securities at 15% and 2%, respectively, of outstanding securities stocks for the fiscal year 2025.
According to the publication, the distribution of incremental improvements in the g-sec limit (in absolute terms) between the two subcategories, "General" and "Long-term," will remain at 50:50 for 2024–2025.
Additionally, according to the RBI, the total notional amount of Credit Default Swaps offered by FPIs cannot exceed 5% of the outstanding stock of corporate bonds.
As a result, the announcement said that an extra cap of Rs 2,54,500 crore has been laid forth for FY25.
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