The Reserve Bank of India (RBI) on January 07, 2025, issued the Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025.
These Directions shall be applicable to all transactions by eligible non-residents in debt instruments.
The following directions have been stated:
Investment Channels
The following shall be the channels for investment in debt instruments by non-residents:
o General Route for investment in Government securities and corporate debt securities by FPIs subject to specified investment limits and macro-prudential limits;
o Voluntary Retention Route for investments in Government securities and corporate debt securities, free of certain macro-prudential limits applicable to FPI investments in debt markets under the General Route, by FPIs that commit to remain invested for a stipulated retention period;
o Fully Accessible Route for investments by non-residents in certain specified categories of Central Government securities (‘specified securities’) without any restriction; and
o Scheme for Trading and Settlement of Sovereign Green Bonds issued by the Central Government by eligible foreign investors in the International Financial Services Centre (IFSC).
These Directions shall be applicable with immediate effect.
For further details, please refer to the document provided below.
[Notification No. RBI/2024-25/126 FMRD.FMD.No.10/14.01.006/2024-25]
