Banking and Finance, Corporate Governance, and Investing
Recalibrating India's Corporate Debt Market: Analyzing RBI’s 2025 Relaxations for Foreign Portfolio Investors
Introduction and Regulatory Context
On May 8, 2025, the Reserve Bank of India (RBI) issued a very significant notification in respect of the regulatory framework governing Foreign Portfolio Investor (FPI) investment in India's corporate debt market. In removing the short-term investment limit, and the concentration limit, for FPIs investing in India via the general route, the RBI is signaling its commitment to develop a more transparent, liquid, and internationally competitive bond market.[1] This is part of a series of steps that would foster foreign capital inflows, enhance domestic financial market depth, and bring India's regulatory framework in line with international best practices.
25 June 2025