RBI decision on 14-year, 30-year tenors G-Secs

Reserve Bank excluded government securities (G-Sec) of 14-year and 30-year tenors from the Fully Accessible Route (FAR) for foreign portfolio investors.

On a review and in consultation with the government, it has been decided to exclude all new securities of 14-year and 30-year tenors from the Fully Accessible Route, RBI said in a notification. Consequently, future issuances of Government Securities in these tenors would not be available for investment under the Fully Accessible Route, it said.

“Existing stocks of Government Securities in 14-year and 30-year tenors already included as ‘specified securities’ under the Fully Accessible Route shall, however, continue to be available under the Fully Accessible Route for investments by non-residents in the secondary market,” it said.

As per the calendar issued by RBI in April, FPI limit of Rs 2,67,890 crore for G-Sec General and Rs 1,36,890 crore for G-Sec Long Term category for the current fiscal.

As of now, all investments by eligible investors in the ‘specified securities’ is reckoned under the fully accessible route (FAR).

The limit for FPI investment in government securities is currently 6 per cent of outstanding stocks of securities for the current fiscal.