RBI eases investment rules for NRIs in shares, debentures

[caption id=“attachment_1047307” align=“alignleft” width=“380”]  AFP[/caption] The Reserve Bank of India has simplified rules for investment in shares and debentures of Indian companies listed on a local exchange by non-resident Indians. The central bank simplified some of the administrative channels for non-residents to invest in shares and debentures, even as these transactions under the portfolio investment scheme would be reported to it on a daily basis, it said in a statement on Tuesday. To augment foreign portfolio investment inflows by improving investment appetite for long term and other offshore investors, the investment limits for offshore investors in government securities has been enhanced by $5 billion to total limit of $30 billion, Minister of State for Finance Namo Narain Meena said in a written reply in Lok Sabha. The enhanced limit of $5 billion has been earmarked to FIIs registered with SEBI as Sovereign Wealth Funds, multilateral agencies, endowment funds, insurance funds, pension funds and foreign central banks, he added. “It is expected that aforesaid measures would help mobilising greater foreign investment in rupee denominated debt instrument and to help develop rupee debt markets,” Meena said. He said the government, in consultation with RBI and SEBI, has been progressively enhancing the quantitative limits for FII investments in various debt categories, including G-Secs keeping in view the evolving macroeconomic situation, debt liability and foreign exchange reserves position in India. FIIs play an important role in providing liquidity to the G-Sec market. Agencies