Thursday , July 23, 2026 |   06:18:57 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
TP - TPO not justified in narrowing down pool of comparable companies by manipulating manufacturing income filters & introducing arbitrary 2% advertisement cost cap exclusively for domestic assessment: ITAT (See Breaking News) I-T - First proviso to amended Sec 149(1) prohibited issuance of reassessment notice once that old limitation had lapsed: ITAT (See Breaking News) I-T - If salary are paid to overseas group entities by way of actual reimbursements, then no TDS is required u/s 195: ITAT (See Breaking News) DTAA - An agency Permanent Establishment cannot exist when agent acts in ordinary course of its business & is not wholly dependent on a single principal: ITAT (See Breaking News) TP - Comparable may survive functional challenge but still be excluded if it fails accepted quantitative filter such as related party transaction threshold: ITAT (See Breaking News) TP - Principle of consistency runs through previous years treatment of comparables, guarantee/comfort letter pricing: ITAT (See Breaking News) I-T - Receipts from sale of software cannot be taxed as royalty merely because customer receives limited right to use software: ITAT (See Breaking News) INTL - Per settled precedent, sale of software and ancillary support services cannot be taxed as royalty & consideration received therefor is not taxable as fees for technical service: ITAT (See Breaking News) Govt notifies amending Protocol to India-Sri Lanka DTAA Global Min Tax: Reform is on track, says OECD (See Brief) TP - If facts surrounding intra-group foreign currency loan remain unchanged from earlier years, arm's length interest rate should be consistently benchmarked in line with earlier decision: ITAT (See Breaking News) I-T - DRP mechanism u/s 144C does not operate outside or independent of limitation framework: ITAT (See Breaking News) TP - AO must pass final assessment order within stipulated period of one month; order passed beyond such period is barred by limitation: ITAT (See Breaking News) TP - Under TNMM, relevant parameter is operating profit, since PBT may include non-operating items and can distort real operating performance: ITAT (See Breaking News)
 
TII SEARCH
 
 
   
Home >>
 

Investment by FPI in Government Securities: MTF
By TII News Service
Apr 15, 2020 , New Delhi

    

A.P. (DIR Series)

CIRCULAR NO

30/Dated: April 15, 2020

To

All Authorized Persons

Investment by Foreign Portfolio Investors (FPI) in Government Securities: Medium Term Framework (MTF)

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 1 to the 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.

2. A reference is also invited to the following directions issued by the Reserve Bank:

a) A.P. (DIR Series) Circular No. 26 dated March 27, 2019;

b) A.P. (DIR Series) Circular No. 24 dated March 30, 2020;

c) A.P. (DIR Series) Circular No. 25 dated March 30, 2020; and

d) Circular No. FMRD. FMSD.No. 25/14.01.006/2019-20 dated March 30, 2020.

3. Revision of investment Limits for FY 2020-21

a. The limits for FPI investment in Government securities (G-secs) and State Development Loans (SDLs) shall remain unchanged at 6% and 2%, respectively, of outstanding stocks of securities for FY 2020-21.

b. In terms of A.P. (DIR Series) Circular No. 25 dated March 30, 2020, all investments by eligible investors in the specified securities will be under the Fully Accessible Route (FAR) from the date on which the FAR comes into effect. Also, all existing FPI investments in the specified securities shall be reckoned under the FAR. The calculation of outstanding stock of G-secs and utilization levels of limits under the MTF has accordingly been adjusted.

c. The allocation of incremental changes in the G-sec limit (in absolute terms) over the two sub-categories - 'General' and 'Long-term' - shall be retained at 50:50 for FY 2020-21.

d. The entire increase in limits for SDLs (in absolute terms) has been added to the 'General' sub-category of SDLs.

4. Accordingly, the revised limits (in absolute terms) for the different categories, including the limits for corporate bonds announced vide A.P. (DIR Series) Circular No. 24 dated March 30, 2020, shall be as under (Table 1):

Table - 1: Investment limits for FY 2020-21

 

Rs. Crore
 
G-Sec - General
G-Sec - Long Term
SDL - General
SDL - Long Term
Corporate Bonds
Total Debt
Current FPI limits
2,46,100
1,15,100
61,200
7,100
3,17,000
7,46,500
Revised limit for the HY Apr -Sept 2020
2,34,531
1,03,531
64,415
7,100
4,29,244
8,38,821
Revised limit for the HY Oct 2020- Mar 2021
2,34,531
1,03,531
67,630
7,100
5,41,488
9,54,280

6. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

7. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approval, if any, required under any other law.

[RBI/2019-20/214]

(Dimple Bhandia)
General Manager-in-Charge

 
 
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.