Monday, November 30, 2015

Investment by Foreign Portfolio Investors in Corporate Bonds

 It has now been decided to permit FPI to acquire NCDs/bonds, which are under default. The revised maturity period of such restructured NCDs/bonds, should be three years or more.

The FPI, which proposes to acquire such bonds should disclose to the Debenture Trustees the terms of their offer to the existing debenture holders / beneficial owners from whom they are acquiring. Such investment should be within the overall limit prescribed for corporate debt from time to time.

Based on RBI Circular dt  26/11/15. Please visit www.rbi.org.in for any further clarification if required…..   Poppy