Investment Limits for Foreign Portfolio Investors

The Reserve Bank of India (RBI) has announced that the investment limits for foreign portfolio investors (FPIs) in government securities through the general route will remain unchanged for the fiscal year 2026-27.

Key Investment Limits

• The investment limit for FPIs in Government Securities (G-Secs) will remain at 6% of the outstanding stocks.
• For State Government Securities (SGSs), the limit is 2% of the outstanding stocks.
• For corporate bonds, the limit is 15% of the outstanding stocks.

Allocation and Limits

• The allocation of incremental changes in the G-Sec limit will remain at a 50:50 distribution between the General and Long-term sub-categories for 2026-27.
• The aggregate limit of the notional amount of credit default swaps sold by FPIs is set at 5% of the outstanding stock of corporate bonds.
• An additional limit of Rs 3,30,464 crore is specified for 2026-27.
• The entire increase in limits for SGSs has been added to the 'General' sub-category.

Fully Accessible Route (FAR)

All investments by eligible investors in the 'specified securities' will be considered under the Fully Accessible Route (FAR).

Voluntary Retention Route

Effective from April 01, 2026, all investments under the Voluntary Retention Route will be subject to the investment limits stipulated for FPI investments under the General Route.