Mumbai : Easing foreign investment rules, the Reserve Bank of India on Tuesday permitted FPIs to invest in treasury bills issued by the central government.
However, the foreign portfolio investors (FPIs) will have to ensure that their exposure in government securities as well as corporate bonds of less than one year maturity will remain below 20 per cent.
In a notification, RBI asked the FPIs to bring down their total exposure in debt instruments (G-secs, state development loans or, corporate bonds) with one-year maturity to below 20 per cent within six months.
“FPIs are permitted to invest in treasury bills issued by the Central Government,” the RBI said while issuing clarification on recent changes in investment norms for FPIs.
