The Reserve Bank of India (RBI) has introduced significant changes to the investment framework for Foreign Portfolio Investors (FPIs) in Government Securities (G-Secs) to make investing in India easier and more attractive for foreign investors.
Key Changes Announced by RBI
1. Removal of Investment Restrictions
FPIs investing through the General Route will no longer be required to comply with:
- Short-term investment limits
- Security-wise investment limits
- Concentration limits
This move provides greater flexibility and reduces compliance requirements for foreign investors.
2. Consolidation of Investment Categories
The RBI has merged the earlier investment sub-categories:
- General Category
- Long-Term Category
into a single consolidated investment limit for:
- Central Government Securities (G-Secs)
- State Government Securities (SGSs)
This simplification is expected to improve operational ease for investors.
Revised FPI Investment Limits for FY 2026-27
Central Government Securities (G-Secs)
| Period | Investment Limit |
|---|---|
| First Half (Apr-Sep 2026) | ₹4,62,490 crore |
| Second Half (Oct 2026-Mar 2027) | ₹4,77,006 crore |
State Government Securities (SGSs)
| Period | Investment Limit |
|---|---|
| First Half (Apr-Sep 2026) | ₹1,53,043 crore |
| Second Half (Oct 2026-Mar 2027) | ₹1,64,242 crore |