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RBI announces measures to attract foreign capital
The Reserve Bank of India (RBI) has announced few measures in order to attract capital flow. Firstly, for government securities under the Fully Accessible Route (FAR), the central bank is expanding the universe of specified securities by including all new issuances of 15-, 30- and 40-year tenor G-secs. In addition, limits pertaining to short-term investment, concentration and individual securities on FPI investment under the General Route are being removed. These measures along with the tax benefits provided by the government this morning should help attract foreign capital for government borrowing. Second, the limits for investment by NRIs and OCIs in equity instruments traded on the stock market without SEBI registration are being increased. Further, the same facility is being extended to all individual Persons Resident Outside India (PROIs) at par with NRIs and OCIs. Third, a facility of concessional forex swap will be provided till 30th September 2026 to incentivize ECBs by PSUs.