RBI, in consultation with the Government has hiked the foreign portfolio investors (FPI) investment limit in Central government securities (G-Sec) from 5% of outstanding stock now to.....in FY2019 and.....in FY2020.

BANKING GENERAL KNOWLEDGE

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

RBI, in consultation with the Government has hiked the foreign portfolio investors (FPI) investment limit in Central government securities (G-Sec) from 5% of outstanding stock now to____in FY2019 and____in FY2020.

A	5.5% and 6.5%
B	5.5% and 6.0%
C	6.0% and 6.5%
D	6.5% and 7.0%

Explanation:

Detailed explanation-1: -The limits for FPI investment in Government securities (G-secs), State Development Loans (SDLs) and corporate bonds shall remain unchanged at 6%, 2% and 15% respectively, of outstanding stocks of securities for FY 2022-23.

Detailed explanation-2: -A dedicated investment limit of Rs 1.50 lakh crore was set for investments under the VRR. Given the positive response to the VRR as evident from the near exhaustion of the current limit, it is proposed to increase the investment limit under VRR by Rs 1 lakh crore to Rs 2.5 lakh crore with effect from April 1, 2022.

Detailed explanation-3: -Investment by Foreign Portfolio Investors (FPI) in Debt-Relaxations. Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to the paragraph 3 of the press release on “Liberalisation of Forex Flows” dated July 06, 2022 regarding relaxations in the regulatory regime under the Medium-Term Framework.

Detailed explanation-4: -The notification further said the aggregate limit of the notional amount of Credit Default Swaps (CDS) sold by foreign portfolio investors (FPIs) shall be 5 per cent of the outstanding stock of corporate bonds. Accordingly, an additional limit of Rs 2, 22, 623 crore is set out for FY 2022-23.

There is 1 question to complete.