Reserve Bank of India vide its Circular dated 23rd January, 2023, has issued a notification regarding the ‘Fully Accessible Route’ (FAR) for Investment by Non-residents in Government Securities – Inclusion of Sovereign Green Bonds.
The Government Securities eligible for investment under the FAR (‘specified securities’) were notified by the Bank, vide circular no. FMRD.FMSD.No.25/14.01.006/2019-20 dated March 30, 2020, and circular no. FMRD.FMID.No.04/14.01.006/2022-23 dated July 07, 2022.
It has now been decided to designate all Sovereign Green Bonds issued by the Government in the fiscal year 2022-23 as ‘specified securities’ under the FAR.
The Directions contained in this circular have been issued under Section 45W of Chapter IIID of the Reserve Bank of India Act, 1934. They are without prejudice to permissions/ approvals, if any, required under any other law.
This Circular is applicable to all participants in Government Securities market and shall come into force with immediate effect.
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