RBI new norms for FPI in debt. - TNPSC GURU - TNPSC Group 2A/2 Apply Online - Join Test batch


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Tuesday, June 19

RBI new norms for FPI in debt.

TNPSC Current Affairs - June 2018 by TNPSC Guru 

  • Reserve Bank of India has eased Foreign portfolio investors norms to invest in debts especially in individual large corporates.
  • This will help to attract more overseas flows and helps to recover rupee value and also help to lift the recent fall in demand for corporate bonds.
  • RBI has increased FPI Cap to 30 % from 20% in investing in Government securities.

Difference b/w FPI and FDI.
  • Foreign Portfolio investment is an investment held by foreign investor in Indian securities, bonds and other financial assets .
  • Like Foreign Direct investment (FDI) it doesn’t provide direct ownership on financial assets , bonds or securities, instead its goal is to create quick money by investing.
  • Foreign investor purchase direct business in other country is called Foreign Direct investment.  
  • FPI is more liquid and less risky comparing to FDI.

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