RBI removes cap on investments in corporate bonds by FPIs
By Abhirup Ghosh (abhirup@vinodkothari.com), (finserv@vinodkothari.com)
The Reserve Bank of India (RBI) in its Sixth Bi-monthly Monetary Policy Statement for 2018-19 dated February 07, 2019[1] had declared that for the purpose of widening the spectrum of investors in the Indian corporate bond market, it will remove the cap on investment to be made by FPIs on corporate bonds. In furtherance to the declaration, the RBI on 15th February, 2019[2] issued a notification giving effect to the proposal.
Before we understand what the impact of the notification will be, let us recapitulate what the restrictions were. Read more →