Latest News | RBI Excludes 14-year, 30-year Tenors G-Secs from FAR for Foreign Investors
Get latest articles and stories on Latest News at LatestLY. Reserve Bank on Monday excluded government securities (G-Sec) of 14-year and 30-year tenors from the Fully Accessible Route (FAR) for foreign portfolio investors.
Mumbai, Jul 29 (PTI) Reserve Bank on Monday excluded government securities (G-Sec) of 14-year and 30-year tenors from the Fully Accessible Route (FAR) for foreign portfolio investors.
On a review and in consultation with the government, it has been decided to exclude all new securities of 14-year and 30-year tenors from the Fully Accessible Route, RBI said in a notification.
Consequently, future issuances of Government Securities in these tenors would not be available for investment under the Fully Accessible Route, it said.
"Existing stocks of Government Securities in 14-year and 30-year tenors already included as ‘specified securities' under the Fully Accessible Route shall, however, continue to be available under the Fully Accessible Route for investments by non-residents in the secondary market," it said.
As per the calendar issued by RBI in April, FPI limit of Rs 2,67,890 crore for G-Sec General and Rs 1,36,890 crore for G-Sec Long Term category for the current fiscal.
As of now, all investments by eligible investors in the 'specified securities' is reckoned under the fully accessible route (FAR).
The limit for FPI investment in government securities is currently 6 per cent of outstanding stocks of securities for the current fiscal.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)