Indian rupee and U.S. dollar banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

SEBI Lifts Foreign Investment Cap On Corporate Bonds

The Securities and Exchange Board of India withdrew the 20 percent 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In a notification, the regulator said the restriction is being withdrawn in accordance with a circular issued by the Reserve Bank of India.

In June last year, the market regulator had mandated that no FPIs shall have an exposure of more than 20 percent 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RBI, the regulator said provisions of its June 2018 circulars with respect to exposure of more than 20 percent "stands withdrawn with immediate effect".

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