New Delhi, March 31 The Reserve Bank on Monday notified that some categories of government securities will be opened fully for non-resident investors, and will continue to be open for the domestic investors.
At present, G-secs are not fully opened for subscription by non-resident investors.
The RBI, in a notification on Monday, said: “A reference is also invited to the announcement made in the Union Budget 2020-21 that certain specified categories of Central Government securities would be opened fully for non-resident investors without any restrictions, apart from being available to domestic investors as well.”
“Accordingly, it has been decided, in consultation with the Government of India, to introduce a separate route viz., Fully Accessible Route (FAR) for investment by non-residents in securities issued by the Government of India.”
“These directions shall come into effect from April 1, 2020.”
In another notification, the RBI said that it shall notify the government securities that shall be eligible for investment under the FAR.
“These securities will continue to be eligible for investment by residents. ”Specified securities”, once so designated, shall remain eligible for investment under the FAR until maturity,” the notification said.
“… In addition, all new issuances of Government securities of 5-year, 10-year and 30-year tenors from the financial year 2020-21 will be eligible for investment under the FAR as ”specified securities”. The Reserve Bank may add new tenors or change the tenors of new securities to be designated as ”specified securities” from time to time.”
Finance Minister Nirmala Sitharaman had announced in the Union Budget that NRIs will be allowed to invest in certain categories of G-secs.
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(This story has not been edited by BDC staff and is auto-generated from a syndicated feed from IANS.)
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