RBI tweaks norms on VRR investment by FPIs
The Reserve Bank of India Friday fixed the investment limit at Rs 54,606.55 crore for foreign portfolio investors (FPIs) under the voluntary retention route (VRR), which allows to park funds in both government securities as well as corporate debt.
VRR for investments by FPIs was introduced on March 1. Limits for investment in debt by FPIs were offered for allotment 'on tap' during the March 11-April 30 period.
Based on the feedback received, and in consultation with the government, the RBI said it has made certain changes in the scheme to increase its operational flexibility.
"The investment limit shall be Rs 54,606.55 crore, under the VRR-combined category, which allows investment in both government securities and corporate debt," it said.
The revised VRR scheme will open for allotment from May 27.
The minimum retention period would be three years.
During this period, FPIs shall maintain a minimum of 75 per cent of the allocated amount in India.
The RBI further said investment limits