RBI Excludes 14-Year and 30-Year Government Securities from Fully Accessible Route for FPIs

The Reserve Bank of India (RBI) has excluded government securities (G-Sec) of 14-year and 30-year tenors from the Fully Accessible Route (FAR) for foreign portfolio investors (FPIs). This decision, in consultation with the government, affects all new securities of these tenors. Existing stocks remain unaffected.

The Reserve Bank of India (RBI) announced on Monday the exclusion of 14-year and 30-year government securities (G-Secs) from the Fully Accessible Route (FAR) for foreign portfolio investors (FPIs).

Following a review and consultations with the government, it was decided that all new securities of these tenors would be excluded from the FAR, according to an RBI notification.

Future issuances of these government securities will no longer be available for investment under the FAR. However, existing stocks of the specified 14-year and 30-year securities will remain accessible to non-residents in the secondary market.

According to the RBI's April calendar, the FPI limit for G-Sec General is Rs 2,67,890 crore, and Rs 1,36,890 crore for the G-Sec Long Term category for the current fiscal year.

Investments in the 'specified securities' by eligible investors continue to be recognized under the FAR. The current FPI investment limit in government securities stands at 6 percent of outstanding stocks for the current fiscal year.

(With inputs from agencies.)