On a review of Foreign Exchange Management (Debt Instruments) Regulations, 2019, Reserve Bank of India vide notification no. RBI/2019-20/151 dated January 23, 2020, introduces the following changes to the Directions governing investment through the Voluntary Retention Route (VRR):
- The Investment Cap is increased from 75,000 crores to 1,50,000 crores.
- FPIs that have been allotted investment limits under VRR may, at their discretion, transfer their investments made under the General Investment Limit to VRR.
- FPIs are also allowed to invest in Exchange Traded Funds that invest only in debt instruments.
- The revised scheme will be open for allotment from January 24, 2020.
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/APDIR19FABE1903188142B9B669952C85D3DCEE.PDF
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
