RBI eases rules for FPIs to transact in securities directly

The Dollar Business Bureau

Reserve Bank of India (RBI) has eased rules for foreign portfolio investors (FPIs) for transacting in securities except shares by permitting them to directly trade in such instruments.

“With a view to providing flexibility in regard to the manner in which non-convertible debentures/bonds issued by Indian companies can be acquired by FPIs, it has now been decided to allow them to transact in such instruments either directly or in any manner as per the prevalent/approved market practice,” a notification by the RBI reads.

SEBI (Securities and Exchange Board of India) registered Foreign Institutional Investors (FIIs), registered FPIs, Qualified Foreign Investors (QFIs) and long-term investors are permitted to buy securities on the basis of repatriation and in accordance with terms and conditions as may be stated by SEBI and the RBI from time-to-time, it said.