Voluntary retention route: A halfway measure?

By Sawant Singh and Aditya Bhargava, Phoenix Legal
0
1777
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

The government and the financial sector regulators, the Reserve Bank of India (RBI) and the Securities and Exchange Board of Indian (SEBI), have considered various measures to ease debt investment rules for foreign portfolio investors (FPIs) such as relaxing group exposure thresholds (20%) and the per issue investment limits (50%). In this vein, the RBI issued a discussion paper in October 2018 on voluntary retention route (VRR) to facilitate foreign portfolio investment in debt.

Under VRR, FPIs will have more operational flexibility in terms of instruments as well as exemptions from concentration limits, and group-level and issue-level thresholds. Following the discussion paper, the RBI issued a circular on VRR on 1 March.

Sawant-Singh-Phoenix-Legal
Sawant Singh
Partner
Phoenix Legal

All FPIs registered with SEBI are eligible to participate in VRR. Investments under VRR are in addition to the limits prescribed for debt investments. For corporate debt under VRR, the investment limit will be ₹350 billion (US$4.93 billion).

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

Sawant Singh and Aditya Bhargava are partners at the Mumbai office of Phoenix Legal.

Phoenix-Legal-2019

Phoenix Legal
Second Floor
254, Okhla Industrial
Estate Phase III
New Delhi – 110 020
India

Vaswani Mansion, 3/F
120 Dinshaw Vachha Road, Churchgate
Mumbai – 400 020
India

Contact details
Tel +91 11 4983 0000 / +91 22 4340 8500
Fax: +91 11 4983 0099 / +91 22 4340 8501
Email: delhi@phoenixlegal.in
mumbai@phoenixlegal.in

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link