FPIs can invest in debt securities issued by InvITs, REITS

FPIs can invest in debt securities issued by InvITs, REITS The Reserve Bank of India said on Tuesday that Foreign Portfolio Investors (FPIs) are now eligible to participate in debt securities issued by Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) (FPIs). The necessary modifications to the Foreign Exchange Management (Debt Instruments) Regulations, 2019, were previously notified in October. The Union Budget 2021-22 announced that debt financing of InvITs and REITs by Foreign Portfolio Investors (FPIs) will be permitted by amending the applicable legislation. As a result, the RBI has decided to allow FPIs to participate in debt instruments issued by InvITs and REITs, according to a circular. "Under the Medium-Term Framework (MTF) or the Voluntary Retention Route (VRR)," it noted, "FPIs can acquire debt instruments issued by InvITs and REITs." Such investments shall be counted within the limitations and subject to the terms and conditions for FPI investments in debt securities set forth in the appropriate MTF and VRR regulations. To Read the Circular Download PDF Given Below :