The Reserve Bank of India eased norms for foreign portfolio investors to transact in securities other than shares by allowing them to trade directly 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,” the RBI said in a notification.
Sebi registered Foreign Institutional Investors (FIIs), Qualified Foreign Investors (QFIs), registered Foreign Portfolio Investors (FPIs) and long-term investors are allowed to purchase securities on repatriation basis, and subject to such terms and conditions as may be specified by SEBI and the Reserve Bank from time to time, it said.
Source: HindustanTimes