Money & Bankin

FPIs can buy debt securities issued by InvITs, REITs: RBI

Our Bureau Mumbai | Updated on November 08, 2021

Subjected to terms & conditions under respective regulations

The Reserve Bank of India on Monday said foreign portfolio investors can acquire debt securities issued by Infrastructure Investment Trusts and Real Estate Investment Trusts.

Within the limits

Such investments shall be reckoned within the limits and subject to the terms and conditions for investments by FPIs in debt securities under the respective regulations of Medium Term Framework and Voluntary Retention Route, said an RBI circular.

The RBI, on March 31, had left the limits for FPI investment in corporate bonds unchanged at 15 per cent of outstanding stock of securities for FY22, with the limit for the second half (October 2021 till March 2022) pegged at ₹6,07,039 crore against ₹5,74,263 crore for the first half (April-September 2021).

An announcement was made in the Union Budget 2021-22 that debt financing of InvITs and REITs by FPIs will be enabled by making suitable amendments in the relevant legislations. The decision is in line with the announcement, it said.

Published on November 08, 2021

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