FPIs can invest in debt securities issued by InvITs, REITS: RBI circular

By: |
November 08, 2021 8:26 PM

An announcement was made in the Union Budget 2021-22 that debt financing of InvITs and REITs by FPIs will be enabled by making suitable amendments in the relevant legislations.

RBI Necessary amendments to Foreign Exchange Management (Debt Instruments) Regulations, 2019 were earlier notified in October.

The Reserve Bank on Tuesday said FPIs have been permitted to invest in debt securities issued by Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) by Foreign Portfolio Investors (FPIs).

Necessary amendments to Foreign Exchange Management (Debt Instruments) Regulations, 2019 were earlier notified in October.

An announcement was made in the Union Budget 2021-22 that debt financing of InvITs and REITs by Foreign Portfolio Investors (FPIs) will be enabled by making suitable amendments in the relevant legislations.

Accordingly, it has been decided to permit FPIs to invest in debt securities issued by InvITs and REITs, the RBI said in a circular.

“FPIs can acquire debt securities issued by InvITs and REITs under the Medium-Term Framework (MTF) or the Voluntary Retention Route (VRR),” it said.

Such investments shall be reckoned within the limits and shall be subject to the terms and conditions for investments by FPIs in debt securities under the respective regulations of MTF and VRR.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Sebi may get to regulate private cryptocurrencies
2Maintain ‘buy’ on L&T with SOTP-based PT of ₹2,405
3ICICI Securities: Maintain ‘buy’ with a one-year TP of Rs 970