- The RBI kept the FPI investment limit in government securities at 6% for 2026-27
- Incremental changes in G-Sec limits are split equally between General and Long-term sub-categories
- FPI limits remain 6% for G-Secs, 2% for SGSs, and 15% for corporate bonds in 2026-27
The Reserve Bank on Monday said the investment limit for foreign portfolio investors in government securities through the general route will remain unchanged at 6 per cent of the outstanding stocks of securities for 2026-27.
Also, the allocation of incremental changes in the G-Sec limit (in absolute terms) over the two sub-categories -- General and Long-term -- has been retained at 50:50 for 2026-27, it said in a circular on limits for investment in debt and sale of credit default swaps by foreign portfolio investors (FPIs).
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"The limits for FPI investment in Government Securities (G-Secs), State Government Securities (SGSs) and corporate bonds shall remain unchanged at 6 per cent, 2 per cent and 15 per cent respectively, of the outstanding stocks of securities for 2026-27 for the General Route," the RBI said.
The aggregate limit of the notional amount of credit default swaps sold by FPIs will be 5 per cent of the outstanding stock of corporate bonds, it added.
Accordingly, an additional limit of Rs 3,30,464 crore is set out for 2026-27.
The entire increase in limits for SGSs (in absolute terms) has been added to the 'General' sub-category of SGSs.
"As hitherto, all investments by eligible investors in the 'specified securities' shall be reckoned under the Fully Accessible Route (FAR)," the RBI said.
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With effect from April 01, 2026, all existing and future investments under the Voluntary Retention Route will be subject to the investment limits stipulated for FPI investments under the General Route.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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