Tuesday , April 7, 2026 |   13:27:51 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
I-T - Entitlement to tax withholding certificate at ‘NIL' rate depends on agreement between parties: HC (See Breaking News) TP - Overdue receivables from AE are considered a separate international transaction of 'capital financing' under Explanation 1(c) to Section 92B and must be benchmarked separately: ITAT (See Breaking News) INTL -Limitation prescribed u/s 153 continues to apply even where assessment is framed through draft order procedure u/s 144C: ITAT (See Breaking News) INTL - Where final assessment order had been passed beyond outer time limit prescribed u/s 153 r/w Section 144C, the order is thus barred by limitation & therefore liable to be quashed: ITAT (See Breaking News) I-T - Nature of adjudication by AAR is akin to 'reference', and application u/s 245Q is covered under ambit of any proceedings as mentioned in Sec 150: HC (See Breaking News) I-T - Provisions of Section 144C are part of assessment procedure and do not override absolute limitation period set by Section 153 for completion of assessment: ITAT (See Breaking News) I-T - Period of limitation for passing final assessment order u/s 144C(13) must be determined by combined reading of Section 144C and Section 153: ITAT (See Breaking News) I-T - Payments made by Indian subsidiary to its foreign parent company as reimbursement for arranging centralized facilities that support subsidiary's business operations are classifiable as 'managerial services', taxable as FTS: ITAT (See Breaking News) I-T - Final assessment order passed beyond statutory time limit prescribed under Section 153 is barred by limitation and is liable to be quashed: ITAT (See Breaking News)
 
TII SEARCH
 
 
   
Home >>
 

Investment by Foreign Portfolio Investors (FPI) in Debt
By TII News Service
Jan 23, 2020 , Mumbai

    

A.P. (DIR Series)

CIRCULAR NO

18/Dated: January 23, 2020

To

All Authorised persons

Investment by Foreign Portfolio Investors (FPI) in Debt

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified vide Notification No. FEMA. 396/2019-RB dated October 17, 2019, as amended from time to time, and the relevant directions issued thereunder. A reference is also invited to the A.P. (DIR Series) Circular No. 31 dated June 15, 2018 (hereinafter, Directions) read with A.P. (DIR Series) Circular No. 19 dated February 15, 2019.

2. On a review, the following changes are made to the Directions: -

a) In terms of paragraph 4(b) (i) of the Directions, short-term investments by an FPI shall not exceed 20% of the total investment of that FPI in either Central Government Securities (including Treasury Bills) or State Development Loans. This short-term investment limit is hereby increased from 20% to 30%.

b) In terms of paragraph 4(b) (ii) of the Directions, short-term investments by an FPI shall not exceed 20% of the total investment of that FPI in corporate bonds. This short-term investment limit is hereby increased from 20% to 30%.

c) FPI investments in Security Receipts are currently exempted from the short-term investment limit (paragraph 4 (b)(ii)) and the issue limit (paragraph 4(f)(iii)). These exemptions shall also extend to FPI investments in the following securities:

i. Debt instruments issued by Asset Reconstruction Companies; and

ii. Debt instruments issued by an entity under the Corporate Insolvency Resolution Process as per the resolution plan approved by the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016

3. The updated Directions are attached.

4. These directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/ approvals, if any, required under any other law.

[RBI/2019-20/150]

(Saswat Mahapatra)
Deputy General Manager (O-i-C)

 
 
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI TII
  • DTAA
  • Circulars (I-T Act, 1922)
  • Limited Treaties
  • Other Treaties
  • TIEAs
  • Notifications
  • Circulars
  • Relevant Sections of I-T Rules,1962
  • Instructions
  • Administrative Orders
  • DRP Panel
  • I-T Act, 1961
  • MLI
  • Relevant Portion of I-T Act,1922
  • GAAR
  • MAP
  • OECD Conventions
  • Draft Guidelines
  • DTC Bill
  • Committee Reports
  • FATCA
  • Intl-Taxation
  • Finance Acts
  • Manual on EoI
  • UN Model Taxation
  • Miscellaneous
  • Cost Inflation Index
  • Union Budget
  • Information Security Guidelines
  • APA Annual Report
  • APA Rules
  • Miscellaneous
  • Relevant Sections of Act
  • Instructions
  • Circulars
  • Notifications
  • Draft Notifications
  • Forms
  • TP Rules
  • APA FAQ
  • UN Manual on TP
  • Safe Harbour Rules
  • US Transfer Pricing
  • FEMA Act
  • Exchange Manual
  • Fema Notifications
  • Master Circulars
  • Press Notes
  • Rules
  • FDI Circulars
  • RBI Circulars
  • Reports
  • FDI Approved
  • RBI Other Notifications
  • FIPB Review
  • FEO Act
  • INTELLECTUAL PROPERTY
  • CBR Act
  • NBFC Report
  • Black Money Act
  • PMLA Instruction
  • PMLA Bill
  • FM Budget Speeches
  • Multimodal Transportation
  • Vienna Convention
  • EXIM Bank LoC
  • Manufacturing Policy
  • FTDR Act, 1992
  • White Paper on Black Money
  • Posting Policy
  • PMLA Cases
  • Transfer of Property
  • MCA Circular
  • Limitation Act
  • Type of Visa
  • SSAs
  • EPFO
  • Acts
  • FAQs
  • Rules
  • Guidelines
  • Tourist Visa
  • Notifications
  • Arbitration
  • Model Text
  • Agreements
  • Relevant Portion of I-T Act
  • I-T Rules, 1962
  • Circulars
  • MISC
  • Notification
  • About Us
  • Contact Us
  •  
     
    A Taxindiaonline Website. Copyright © 2010-2025 | Privacy Policy | Taxindiainternational.com Pvt. Ltd. OPC All rights reserved.