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RBI removed the limit of investment in corporate bonds by FPI

USNMix Report: RBI cuts shortage of FPI investment limit in corporate bonds.
On Friday, the Reserve Bank of India (RBI) has removed the limit of 20 percent of the investment in corporate bonds by foreign portfolio investors (FPI). The motto behind this is to attract more foreign investment. Under the review of FPI investment in corporate debt in April, 2018, it was decided that no FPI would be able to invest more than 20 percent of its corporate bond portfolio in one company.

RBI removed the limit of investment in corporate bonds by FPI

The purpose of this provision is to encourage the FPI to maintain its portfolio. The Reserve Bank said that the feedback received from the market indicates that foreign portfolio investors are having trouble with this curb. The central bank said that this provision is being removed with immediate effect to encourage investors to invest in the Indian corporate bond market.

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