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ARTICLE · 27 MAY 2025

RBI Eases Investments By FPIs In Corporate Debt Securities

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Investment in debt instruments in India by non-resident investors is governed by inter alia the Foreign Exchange Management (Debt Instruments) Regulations, 2019 and the Master Direction - Reserve Bank of India (Non-Resident Investment in Debt Instruments) Directions, 2025.

IndiaFinance and Banking
Arpita Garg
Arpita Garg
Prajjwal Tiwari
Prajjwal Tiwari

Investment in debt instruments in India by non-resident investors is governed by inter alia the Foreign Exchange Management (Debt Instruments) Regulations, 2019 and the Master Direction - Reserve Bank of India (Non-Resident Investment in Debt Instruments) Directions, 2025 ("RBI Master Direction").

For investment in debt securities by FPIs, the RBI Master Direction identifies certain investment routes. While the fully accessible route and the scheme for trading and settlement of sovereign green bonds provides exclusively for investments into government securities and sovereign green bonds respectively, the general route and the voluntary retention route ("VRR") allows FPIs to invest in corporate debt securities along with other central and state government securities. Investments made through general route are subject to certain macro prudential norms including short term investment limits, minimum residual maturity and concentration limits, which are not

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