RBI Maintains Foreign Portfolio Investment Limits for Government Securities in FY27
RBI keeps investment limit for FPIs in G-secs unchanged for FY27
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The Reserve Bank of India (RBI) has decided to keep the investment limit for foreign portfolio investors (FPIs) in government securities at 6% of outstanding stocks for the fiscal year 2026-27. The allocation for incremental changes in government securities remains at 50:50 between general and long-term categories.
- 01FPI investment limit for government securities remains at 6% for FY27.
- 02Allocation for incremental changes in G-Sec limit is set at 50:50.
- 03Investment limits for State Government Securities and corporate bonds are unchanged.
- 04An additional limit of ₹3,30,464 crore is established for FY27.
- 05Future investments under the Voluntary Retention Route will adhere to General Route limits.
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The Reserve Bank of India (RBI) announced that the investment limit for foreign portfolio investors (FPIs) in government securities will remain unchanged at 6% of the outstanding stocks for the fiscal year 2026-27. This decision maintains the allocation for incremental changes in government securities at a 50:50 ratio between the General and Long-term categories. Additionally, the limits for State Government Securities (SGSs) and corporate bonds will also stay the same at 2% and 15%, respectively. The RBI has set an additional limit of ₹3,30,464 crore for FY27, with all investments by eligible investors in specified securities counted under the Fully Accessible Route (FAR). Starting April 1, 2026, all existing and future investments under the Voluntary Retention Route will be subject to the investment limits outlined for the General Route.
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The unchanged investment limits for FPIs may stabilize the market for government securities, potentially benefiting investors and maintaining liquidity in the bond market.
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