Wednesday , April 1, 2026 |   07:09:45 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
Residency of Binny Bansal of Flipkart-fame - ‘Meaning of Being outside India'! (See TII Edit) TP - Section 92BA(i), governing specified domestic transactions, stands omitted without any saving clause & therefore, is to be treated as non-existent in statute - additions based on Section 92BA quashed: ITAT (See Breaking News) TP - Transfer pricing adjustment on international transaction involving payment of interest to AE is not warranted if assessee has already suo motu disallowed entire interest amount u/s 94B: ITAT (See Breaking News) TPO - In case involving reference to Transfer Pricing Officer, time limit for completing assessment is extended by 12 months as per Section 153(4): ITAT (See Breaking News) I-T - Appeal against a final assessment order lies before the Commissioner Appeals, and not directly before the Tribunal: ITAT (See Breaking News) I-T - Pure error of law based on plausible understanding of law, if income was fully disclosed in accounts and neither concealed nor inaccurately reported, does not attract Sec 271(1)(c): HC (See Breaking News) I-T - Period of limitation for passing final assessment order u/s 144C(13) must be determined by combined and harmonious reading of Section 144C and Section 153: ITAT (See Breaking News) TP - As is trite law, ALP of royalty payments to AEs should be determined using the TNMM method: ITAT (See Breaking News) DTAA - In absence of statutory time stipulation, delayed filing of Form 10F cannot be treated as fatal defect so as to deny treaty benefits, particularly when tax residency & eligibility under DTAA are not in dispute: ITAT (See Breaking News) I-T - Competent Authority shall issue Nil Tax Withholding Certificate within stipulated time, if delay will practically render assessee's case infructuous and will be of no avail as F.Y will be over: HC (See Breaking News) I-T - Final assessment order passed beyond time limit prescribed u/s 153 is barred by limitation and is invalid, even if internal timelines within Sec 144C procedure were adhered to: ITAT (See Breaking News) DTAA - Since payment for standard transponder services does not involve any secret process, it is not taxable as royalty in India under Treaty: ITAT (See Breaking News) INTL - Expenditure incurred wholly & exclusively for business purpose cannot be disallowed merely because it was not necessary or profitable: ITAT (See Breaking News) I-T - Section 144C and Section 153 are not mutually exclusive but are mutually inclusive and must be read harmoniously: ITAT (See Breaking News) TP - Mere reclassification of Compulsorily Convertible Debentures into equity & debt components under Ind-AS does not alter their intrinsic nature as debt instruments until actual conversion: ITAT (See Breaking News) TP - Addition framed TPO invalid where transaction in question is covered by binding Advance Pricing Agreement between assessee & CBDT as per Section 92CC: ITAT (See Breaking News)
 
TII SEARCH
 
 
   
Home >>
 

Investment by FPI in Government Securities: MTF
By TII News Service
Apr 15, 2020 , New Delhi

    

A.P. (DIR Series)

CIRCULAR NO

30/Dated: April 15, 2020

To

All Authorized Persons

Investment by Foreign Portfolio Investors (FPI) in Government Securities: Medium Term Framework (MTF)

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 1 to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified vide Notification No. FEMA. 396/2019-RB dated October 17, 2019, as amended from time to time and the relevant directions issued thereunder.

2. A reference is also invited to the following directions issued by the Reserve Bank:

a) A.P. (DIR Series) Circular No. 26 dated March 27, 2019;

b) A.P. (DIR Series) Circular No. 24 dated March 30, 2020;

c) A.P. (DIR Series) Circular No. 25 dated March 30, 2020; and

d) Circular No. FMRD. FMSD.No. 25/14.01.006/2019-20 dated March 30, 2020.

3. Revision of investment Limits for FY 2020-21

a. The limits for FPI investment in Government securities (G-secs) and State Development Loans (SDLs) shall remain unchanged at 6% and 2%, respectively, of outstanding stocks of securities for FY 2020-21.

b. In terms of A.P. (DIR Series) Circular No. 25 dated March 30, 2020, all investments by eligible investors in the specified securities will be under the Fully Accessible Route (FAR) from the date on which the FAR comes into effect. Also, all existing FPI investments in the specified securities shall be reckoned under the FAR. The calculation of outstanding stock of G-secs and utilization levels of limits under the MTF has accordingly been adjusted.

c. The allocation of incremental changes in the G-sec limit (in absolute terms) over the two sub-categories - 'General' and 'Long-term' - shall be retained at 50:50 for FY 2020-21.

d. The entire increase in limits for SDLs (in absolute terms) has been added to the 'General' sub-category of SDLs.

4. Accordingly, the revised limits (in absolute terms) for the different categories, including the limits for corporate bonds announced vide A.P. (DIR Series) Circular No. 24 dated March 30, 2020, shall be as under (Table 1):

Table - 1: Investment limits for FY 2020-21

 

Rs. Crore
 
G-Sec - General
G-Sec - Long Term
SDL - General
SDL - Long Term
Corporate Bonds
Total Debt
Current FPI limits
2,46,100
1,15,100
61,200
7,100
3,17,000
7,46,500
Revised limit for the HY Apr -Sept 2020
2,34,531
1,03,531
64,415
7,100
4,29,244
8,38,821
Revised limit for the HY Oct 2020- Mar 2021
2,34,531
1,03,531
67,630
7,100
5,41,488
9,54,280

6. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

7. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approval, if any, required under any other law.

[RBI/2019-20/214]

(Dimple Bhandia)
General Manager-in-Charge

 
 
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI TII
  • DTAA
  • Circulars (I-T Act, 1922)
  • Limited Treaties
  • Other Treaties
  • TIEAs
  • Notifications
  • Circulars
  • Relevant Sections of I-T Rules,1962
  • Instructions
  • Administrative Orders
  • DRP Panel
  • I-T Act, 1961
  • MLI
  • Relevant Portion of I-T Act,1922
  • GAAR
  • MAP
  • OECD Conventions
  • Draft Guidelines
  • DTC Bill
  • Committee Reports
  • FATCA
  • Intl-Taxation
  • Finance Acts
  • Manual on EoI
  • UN Model Taxation
  • Miscellaneous
  • Cost Inflation Index
  • Union Budget
  • Information Security Guidelines
  • APA Annual Report
  • APA Rules
  • Miscellaneous
  • Relevant Sections of Act
  • Instructions
  • Circulars
  • Notifications
  • Draft Notifications
  • Forms
  • TP Rules
  • APA FAQ
  • UN Manual on TP
  • Safe Harbour Rules
  • US Transfer Pricing
  • FEMA Act
  • Exchange Manual
  • Fema Notifications
  • Master Circulars
  • Press Notes
  • Rules
  • FDI Circulars
  • RBI Circulars
  • Reports
  • FDI Approved
  • RBI Other Notifications
  • FIPB Review
  • FEO Act
  • INTELLECTUAL PROPERTY
  • CBR Act
  • NBFC Report
  • Black Money Act
  • PMLA Instruction
  • PMLA Bill
  • FM Budget Speeches
  • Multimodal Transportation
  • Vienna Convention
  • EXIM Bank LoC
  • Manufacturing Policy
  • FTDR Act, 1992
  • White Paper on Black Money
  • Posting Policy
  • PMLA Cases
  • Transfer of Property
  • MCA Circular
  • Limitation Act
  • Type of Visa
  • SSAs
  • EPFO
  • Acts
  • FAQs
  • Rules
  • Guidelines
  • Tourist Visa
  • Notifications
  • Arbitration
  • Model Text
  • Agreements
  • Relevant Portion of I-T Act
  • I-T Rules, 1962
  • Circulars
  • MISC
  • Notification
  • About Us
  • Contact Us
  •  
     
    A Taxindiaonline Website. Copyright © 2010-2025 | Privacy Policy | Taxindiainternational.com Pvt. Ltd. OPC All rights reserved.