%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(66).png "RBI Retains FPI Investment Limits in Government & Corporate Bonds for FY26")
- This decision, announced on April 3, 2025, aims to ensure stability in the financial markets and provide predictability for international investors operating in the Indian debt market.
- Government Securities (G-Secs): 6%
- State Government Securities (SGSs): 2%
- Corporate Bonds: 15%
Government Bonds:
- April - September 2025: ₹2.79 trillion
- October 2025 - March 2026: ₹2.89 trillion
- April - September 2025: ₹8.22 trillion
- October 2025 - March 2026: ₹8.80 trillion
- Fully Accessible Route (FAR): All eligible FPI investments in 'specified securities' will continue to be reckoned under the Fully Accessible Route (FAR).
- G-Sec Limit Allocation: The incremental changes in the G-Sec limit (in absolute terms) will continue to be allocated equally (50:50) between the 'General' and 'Long-term' sub-categories.
- SGS Limit Allocation: The entire increase in the limits for SGSs (in absolute terms) has been added to the 'General' sub-category.
- Credit Default Swaps (CDS): The aggregate limit for the notional amount of Credit Default Swaps sold by FPIs will be 5% of the outstanding stock of corporate bonds. This translates to an additional limit of ₹2,93,612 crore for FY 2025-26.
- Current Utilization: As of the announcement, FPIs had utilized 22.3% of their permitted limit in government bonds and 15.7% in corporate bonds, indicating that there is still significant room for further investment within the existing limits.
Question:
Q.1 As per RBI, What is the FPI investment limit in Government Securities (G-Secs) as a proportion of the outstanding stock for FY 2025-26?a) 6%
b) 5%
c) 4%
d) 7%
Answer: a) The RBI has maintained the FPI investment limit in G-Secs at 6% of the outstanding stock of securities, unchanged from the previous year.
