FPI Investment Limits in G-Sec Unchanged for FY26: RBI

Mumbai, Apr 3 (PTI) The RBI on Thursday said the limits for FPI investment in government securities (g-sec), state government securities (SGSs) and corporate bonds will remain unchanged at 6 per cent, 2 per cent, and 15 per cent, respectively, of the outstanding stocks of securities for 2025-26.

As hitherto, all investments by eligible investors in the "specified securities" will be reckoned under the Fully Accessible Route (FAR), said an RBI circular on 'Limits for investment in debt and sale of Credit Default Swaps by Foreign Portfolio Investors (FPIs)'.

The allocation of incremental changes in the g-sec limit (in absolute terms) over the two sub-categories -- 'General' and 'Long-term' -- will be retained at 50:50 for 2025-26, it said.

Also, the entire increase in limits for SGSs (in absolute terms) has been added to the 'General' sub-category of SGSs, the circular said.

The RBI further said the aggregate limit of the notional amount of credit default swaps sold by FPIs will be 5 per cent of the outstanding stock of corporate bonds.

Accordingly, an additional limit of Rs 2,93,612 crore is set out for 2025-26, the RBI said.