FPIs Investment in Debt Securities

  • November 10, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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FPIs Investment in Debt Securities

Subject – Economy

Context – FPIs can buy debt securities issued by InvITs, REITs: RBI

Concept –

  • The Reserve Bank of India said foreign portfolio investors can acquire debt securities issued by Infrastructure Investment Trusts and Real Estate Investment Trusts.
  • Such investments shall be reckoned within the limits and subject to the terms and conditions for investments by FPIs in debt securities under the respective regulations of Medium Term Framework and Voluntary Retention Route.
  • An announcement was made in the Union Budget 2021-22 that debt financing of InvITs and REITs by FPIs will be enabled by making suitable amendments in the relevant legislations. The decision is in line with the announcement.

To know about InvITs and REITs, please refer August 2021 DPN.

economy FPIs Investment in Debt Securities