Sunday , December 14, 2025 |   11:58:23 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
I-T - Tax on dividends paid by Indian companies to their foreign parents must be capped at rate prescribed under tax treaties instead of one under domestic law: HC (See Breaking News) TP - Receivable should be netted off against payable from its associated enterprises and net amount should be subject to interest determination of arm's-length price: ITAT (See Breaking News) I-T - Mere entry in books of account is not determinative of liability towards income tax, as regards charter hire fees for offloading vessel and operation & maintenance services: ITAT (See Breaking News) TP - If working capital adjustment is granted to assessee, computation of interest on overdue receivable from associated enterprises does not arise: ITAT (See Breaking News) TP - Wide fluctuations in profit margins of same entity on a year-to-year basis would be offset by taking arithmetic mean of all comparables: ITAT (See Breaking News) I-T - Amounts paid by resident Indian distributors to non-resident software manufacturers, as consideration for resale/use of computer software through distribution agreements, is not payment of royalty: ITAT (See Breaking News) TP - ALP is not price which taxpayer is charging or paying for being party in international transaction, but it is the price to be paid or charged in such comparable controlled transaction in comparison to comparable un-controlled transaction: ITAT (See Breaking News) TP - Price charged to non-AEs in India cannot be used as CUP for determining arm's length price of sales of finished products made to overseas AEs: ITAT (See Breaking News) TP - Exercise of jurisdiction u/s 263 to revise final assessment order passed in pursuance to directions of DRP is invalid: ITAT (See Breaking News) Global economy continues to remain fragile: OECD (See Brief) TP - Notional indirect benefit to AE, due to incurring of certain expenditure by assessee in India, is not covered by TP provisions: ITAT (See Breaking News) I-T – As per Explanation to Sec 144C(8), DRP is empowered to examine issues arising out of assessment proceedings even if such issues do not form part of variations proposed by AO: ITAT (See Breaking News) I-T - FPI is free to choose as to how set off of short term capital loss has to be: ITAT (See Breaking News) I-T - TDS is not applicable on commission payment to foreign agents who have rendered services outside India and whose income is not taxable in India: 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.