“Source:The Economic Times”
Markets regulator Sebi on Tuesday withdrew the 20 per cent limit on investments by Foreign Portfolio Investors in corporate bonds of an entity.
In a notification, the regulator said the restriction is being withdrawn in accordance with a circular issued by the Reserve Bank of India (RBI).
In June last year, the Securities and Exchange Board of India (Sebi) had mandated that no Foreign Portfolio Investors (FPIs) shall have an exposure of more than 20 per cent of its corporate bond portfolio to a single corporate.
However, the central bank in February lifted the restriction in view of market feedback.
To give effect to the directions of the RBI, the regulator said provisions of its June 2018 circulars with respect to exposure of more than 20 per cent “stands withdrawn with immediate effect”.