INDIA: RBI approves transactions by FPIs in non-convertible debentures or bonds issued by Indian companies

Tuesday January 3 2017

The Reserve Bank of India (RBI) has amended Schedule 5 of the Foreign Exchange Management (Transfer or Issue of a Security by a Person Resident outside India) Regulations, 2000 to allow Foreign Institutional Investors (FIIs), Qualified Foreign Investors (QFIs), Registered Foreign Portfolio Investors (FPIs) and long term investors registered with the Securities and Exchange Board of India (SEBI) to participate in transactions in non-convertible bonds / debentures issued by Indian companies.

With a view to providing flexibility in regard to the manner in which non-convertible debentures/bonds issued by Indian companies can be acquired by FPIs, transactions in such instruments can be performed either directly or in any manner as per the prevalent/approved market practice.

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