a) RBI vide circular no. vide circular no. RBI/2019-20/239 A.P.(DIR Series) Circular No.32 dated May 22, 2020 has provided relaxations in Voluntary Retention Route’ (VRR) for Foreign Portfolio Investors (FPIs) investment in debt.
b) Foreign Portfolio Investors (FPIs) shall invest at least 75% of their ‘Committed Portfolio Size’ (CPS) within three months from the date of allotment. In view of the disruptions caused by COVID-19, it has been decided to allow FPIs that have been allotted investment limits, between January 24, 2020 (the date of reopening of allotment of investment limits) and April 30, 2020, an additional time of three months to invest 75% of their CPS. For FPIs availing the additional time, the retention period for the investments (committed by them at the time of allotment of investment limit) would be reset to commence from the date that the FPI invests 75% of CPS While such a lockdown and disruption is unforeseen and beyond the control of the entities, such events can lead to distortions in the market due to the gaps in information available about the operations of a listed entity. Hence, it is important for a listed entity to ensure that all available information about the impact of these events on the company and its operations is communicated in.
c) These directions are issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/ approvals, if any, required under any other law.
d) The enitre circular can be accessed on RBI website.
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