India - Foreign Exchange Snapshots.

Legal News & Analysis – Asia Pacific - India - FDI - Capital Markets

10 August, 2019

 

  • Revised Voluntary Retention Route for FPI investment in Debt


The Reserve Bank of India (‘RBI’) has, by way of its circular dated May 24, 2019, notified a revised voluntary retention route (‘VRR’), which was previously introduced on March 1, 2019 as a separate scheme for investments by foreign portfolio investors (‘FPIs’) in Indian debt markets...

 
 
  • Investment by FPIs in Municipal Bonds
     

TAs a measure to broaden access to debt instruments in India for non-resident investors, RBI has, by its circular dated April 25, 2019, permitted FPIs to invest in municipal bonds (i.e. debt instruments issued by municipalities constituted under Article 243Q of the Constitution of India), which investment will be reckoned within the limits applicable for FPI investments in State development loans...

 
 
  • Annual Return on Foreign Liabilities and Assets by Indian Companies
     

RBI by a circular dated June 28, 2019 has introduced a web-based reporting portal, the Foreign Liabilities and Assets Information Reporting (‘FLAIR’) system, to replace the e-mail based reporting of (i) the foreign liabilities and assets (‘FLA’) of Indian companies, (ii) the foreign direct investment (‘FDI’) received by Indian companies, and (iii) the inward and outward foreign affiliate trade statistics (‘FATS’)...

 

For further information, please contact:

 

Zia Mody, Partner, AZB & Partners

zia.mody@azbpartners.com