Friday , July 31, 2026 |   11:36:34 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
I-T – Assessment order is void if limited scrutiny case is converted to complete scrutiny without prior written approval from PCIT: ITAT (See Breaking News) I-T – Payments for automated online advertisement services on foreign platforms do not constitute royalty: ITAT (See Breaking News) TP - Pass-through costs incurred for third-party services without any value addition by tested party must be excluded from operating cost base for margin calculations: ITAT (See Breaking News) Make believe 'make available' (See TII Edit) TP - TPO not justified in determining ALP as nil without applying any recognised method prescribed u/s 92C; cannot questioning commercial expediency of expenditure once actual rendition of services is established: ITAT (See Breaking News) TP - Companies functionally different from captive, limited-risk service provider, or companies lacking reliable segmental data, cannot be retained as comparables: ITAT (See Breaking News) I-T - If tax department has historically granted lower withholding tax certificates based on uncontested history of financial losses, competent authority cannot suddenly impose higher rate: HC (See Breaking News) I-T - For eligible assessee covered by Sec 144C, final assessment order must still be passed within outer limitation prescribed u/s 153 r/w/s 144C: ITAT (See Breaking News) INTL - A literal interpretation of Section 9(1)(i) applies only when capital asset explicitly situated in India is transferred; this legal fiction cannot be stretched to cover indirect transfers of foreign shares: ITAT (See Breaking News) I-T - Remittance of part of earmarked foreign grant by a Sec 12A-registered charitable society to University of Texas for collaborative research project cannot be disallowed as application of income outside India: ITAT (See Breaking News) TP - If BAPA fixes arm's length operating margin for IT and ITES transactions with covered US-based AEs, and transaction with uncovered non-US AE is undisputedly identical on FAR analysis, same BAPA margin can be adopted for uncovered AE as well: ITAT (See Breaking News) I-T - For determining limitation in DRP cases, Sec 144C & Sec 153 must be read together: ITAT (See Breaking News) Rethinking Royalty in the Digital Age - What AWS and Salesforce Judgments Mean (See TII SPECIAL) TP - Unsupported website extracts or third-party database information can override disclosures made in audited financial statements: ITAT (See Breaking News) TP - Notional interest cannot be separately added on delayed AE receivables if TNMM benchmarking with working capital adjustment is already accepted: 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.