Foreign Portfolio Investors or FPI can invest in the primary issues of non-convertible debentures or bonds by a public company issued in demat form, provided that the issuing company does not use the borrowing proceeds for real estate activities, purchase of land, investing in capital market or on-lending to other entities, the Reserve Bank of India said on Monday.
The Reserve Bank of India (RBI) placed a draft circular on its website in regard to foreign portfolio investments in unlisted corporate debt securities and securities debt instruments.
According to the draft, as far as investment in securitised debt instrument is concerned, the RBI said FPIs can invest in any certificate or instrument issued by a special purpose vehicle (SPV) set up for securitisation of assets where banks, FIs or NBFCs are originators. FPIs can also invest in any certificate or instrument issued and listed in terms of the SEBI regulations on public offer.
RBI details new norms for FPI investment
