RBI has announced the Fully Accessible Route under which certain defined categories of Central Government assets are now fully available to non-resident investors without restrictions.
Reetu | Nov 9, 2023 |
RBI allows non-residents to invest in government-issued SGBs through fully accessible route for FY 23-24
The Reserve Bank of India (RBI) has announced the Fully Accessible Route (FAR), under which certain defined categories of Central Government assets are now fully available to non-resident investors without restrictions, in addition to being available to domestic investors via issuing Circular.
The RBI has now decided to categorise all Government Sovereign Green Bonds issued in the financial year 2023-24 as ‘specified securities‘ under the FAR.
The Circular Stated:
A reference is invited to the Press Release on ‘Issuance Calendar for Marketable Dated Securities for October 2023 – March 2024’ dated September 26, 2023, issued by the Reserve Bank, notifying, inter alia, the issuance calendar for Sovereign Green Bonds for the financial year 2023-24. Attention is also invited to the Fully Accessible Route (FAR) introduced by the Reserve Bank, vide A.P. (DIR Series) Circular No. 25 dated March 30, 2020, wherein certain specified categories of Central Government securities were opened fully for non-resident investors without any restrictions, apart from being available to domestic investors as well.
The Government Securities that are eligible for investment under the FAR (‘specified securities’) were notified by the Bank, vide circular no. FMRD.FMSD.No.25/14.01.006/2019-20 dated March 30, 2020, circular no. FMRD.FMID.No.04/14.01.006/2022-23 dated July 07, 2022 and circular no. FMRD.FMID.No.07/14.01.006/2022-23 dated January 23, 2023.
It has now been decided to also designate all Sovereign Green Bonds issued by the Government in the financial year 2023-24 as ‘specified securities’ under the FAR.
The Directions contained in this circular have been issued under Section 45W of Chapter IIID of the Reserve Bank of India Act, 1934 and are without prejudice to permissions/ approvals, if any, required under any other law.
These Directions shall be applicable with immediate effect.
For Official Circular Download PDF Given Below:
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