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RBI CIRCULAR

RBI

CIRCULAR

Investment by Foreign Portfolio Resident outside India) Regulations, 2017 (Notification
No. FEMA 20(R)/2017-RB dated November 07, 2017)
Investors (FPI) in Debt - Review have been notified by the Government on April 18,

RBI/2018-19/176 2019 and are annexed to this circular.
April 25, 2019 7. The directions contained in this circular have been
issued under Sections 10(4) and 11(1) of the Foreign
1. Attention of Authorised Dealer Category-I (AD Exchange Management Act, 1999 (42 of 1999) and are
Category-I) banks is invited to Schedule 5 to the Foreign without prejudice to permissions / approvals, if any,
Exchange Management (Transfer or Issue of Security required under any other law.
by a Person Resident outside India) Regulations, 2017
notified vide Notification No. FEMA 20(R)/2017-RB Yours faithfully
dated November 07, 2017, as amended from time to (T. Rabi Sankar)
time and the relevant directions issued thereunder. A Chief General Manager
reference is also invited to AP (DIR Series) Circular No.
22 dated April 6, 2018, AP (DIR Series) Circular No.31 Exim Bank's Government of India
dated June 15, 2018, and AP (DIR Series) Circular No. supported Line of Credit of USD 66.60
26 dated March 27, 2019 on FPI investments in debt
instruments. million to the Government of the
2. As a measure to broaden access of non–resident Republic of Rwanda
investors to debt instruments in India, Foreign Portfolio
Investors (FPI) are now permitted to invest in municipal RBI/2018-19/173
bonds. April 18, 2019

3. FPI investment in municipal bonds shall be reckoned 1. Export-Import Bank of India (Exim Bank) has entered into
within the limits set for FPI investment in State an agreement dated May 15, 2018 with the
Development Loans (SDLs).
Government of the Republic of Rwanda for making
4. All other existing conditions for investment by FPIs in available to the latter, a Government of India supported
the debt market remain unchanged. Line of Credit (LoC) of USD 66.60 million (USD Sixty Six
5. AD Category-I banks may bring the contents of the Million and Six Hundred Thousand Only) for the purpose
circular to the notice of their customers/constituents of financing the Base-Butaro-Kidaho Road Project in the
concerned. Republic of Rwanda. Under the arrangement, financing
of export of eligible goods and services from India, as
6. Necessary amendments to Foreign Exchange defined under the agreement, would be allowed subject
Management (Transfer or Issue of Security by a Person

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