RBI issued the circular regarding Limits for investment in debt and sale of Credit Default Swaps by Foreign Portfolio Investors (FPIs)
The following has been stated
Investment Limits for the financial year 2025-26:
The limits for FPI investment in Government Securities (G-Secs), State Government Securities (SGSs) and corporate bonds shall remain unchanged at 6 per cent, 2 per cent and 15 per cent respectively, of the outstanding stocks of securities for 2025-26.
The allocation of incremental changes in the G-Sec limit (in absolute terms) over the two sub-categories – ‘General’ and ‘Long-term’ – shall be retained at 50:50 for 2025-26.
The entire increase in limits for SGSs (in absolute terms) has been added to the ‘General’ sub-category of SGSs.
The revised limits (in absolute terms) for the different categories are as follows
| Investment limits for FY 2025-26 | ||||||
| all figures in ₹ Crore | ||||||
| G-Sec General | G-Sec Long Term | SGS General | SGS Long Term | Corporate Bonds | Total Debt | |
| Current FPI limits | 2,68,984 | 1,37,984 | 1,17,752 | 7,100 | 7,63,503 | 12,95,323 |
| Revised limit for the HY Oct 2025- Mar 2026 | 2,79,236 | 1,48,236 | 1,26,248 | 7,100 | 8,22,169 | 13,82,989 |
| Revised limit for the HY Oct 2025- Mar 2026 | 2,89,488 | 1,58,488 | 1,34,744 | 7,100 | 8,80,835 | 14,70,654 |
The aggregate limit of the notional amount of Credit Default Swaps sold by FPIs shall be 5 per cent of the outstanding stock of corporate bonds. Accordingly, an additional limit of ₹2,93,612 crore is set out for 2025-26.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12829&Mode=0
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