RBI Gov Sanjay Malhotra has a few tricks up his sleeve to attract foreign capital
RBI Gov Sanjay Malhotra has a few tricks up his sleeve to attract foreign capital RBI Gov Sanjay Malhotra has a few tricks up his sleeve to attract foreign capital
- Election News
- 2 min read
;'%3e%3cpath%20d='m8,15.99c4.41,0,7.99-3.58,7.99-7.99S12.41,0,8,0,0,3.59,0,8s3.58,7.99,7.99,7.99Z'%20style='stroke:%23fff;%20stroke-miterlimit:10;%20stroke-width:.02px;'/%3e%3cpath%20d='m3.08,3.37l3.82,5.11-3.84,4.15h.87l3.37-3.64,2.72,3.64h2.94l-4.04-5.39,3.58-3.87h-.86l-3.1,3.35-2.5-3.35h-2.94Zm1.27.64h1.35l5.97,7.99h-1.35l-5.97-7.99Z'%20style='fill:%23fff;'/%3e%3c/g%3e%3c/svg%3e){kind=small}
Reserve Bank of India (RBI) Governor Sanjay Malhotra announced a few measures that he said would help attract foreign capital into the country. During 2026-27 so far net FPI to India witnessed outflows of US$ 13.7 billion, primarily in the equity segment, he said.
In order to correct this and attract foreign capital, Gov Malhotra announced certain measures:
What: The central bank expanded the range of "specified securities" under the Fully Accessible Route (FAR) to include all new issuances of 15-year, 30-year and 40-year government securities. It also removed limits on short-term investment, concentration and individual securities for foreign portfolio investor (FPI) investments under the general route.
Why: These steps, along with tax benefits announced by the government earlier, are expected to attract foreign capital for government borrowing.
Advertisement
What: The RBI increased investment limits for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) in equity instruments traded on stock exchanges without requiring registration with the Securities and Exchange Board of India (SEBI). This facility has been extended to all individual Persons Resident Outside India (PROIs) on par with NRIs and OCIs.
Advertisement
What: The central bank expanded the range of "specified securities" under the Fully Accessible Route (FAR) to include all new issuances of 15-year, 30-year and 40-year government securities. It also removed limits on short-term investment, concentration and individual securities for foreign portfolio investor (FPI) investments under the general route.
Why: These steps, along with tax benefits announced by the government earlier, are expected to attract foreign capital for government borrowing.
What: The RBI increased investment limits for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) in equity instruments traded on stock exchanges without requiring registration with the Securities and Exchange Board of India (SEBI). This facility has been extended to all individual Persons Resident Outside India (PROIs) on par with NRIs and OCIs.
