RBI Restricts FPIs from Investing in New 14-Year and 30-Year G-Secs Under Fully Accessible Route

Circular No. RBI/2024-25/56 FMRD. FMID. Mo. 03/14.01.006/2024-25; Dated: 29.07.2024

Earlier, RBI vide circular dated March 30, 2020, introduced the ‘Fully Accessible Route’ (FAR), where certain specified categories of Central Government securities (G-Secs) were opened fully for non-resident investors without any restrictions, apart from being available to domestic investors.

Upon review and consultation with the Government, the RBI has decided to exclude all new securities of 14-year and 30-year tenors from the Fully Accessible Route. Consequently, further issuances of government securities in these tenors will not be available for investment under the Fully Accessible Route.

Further, the RBI has clarified that existing stocks of government securities in 14-year and 30-year tenors already included as ‘specified securities’ under the Fully Accessible Route must continue to be available under this route for investments by non-residents in the secondary market. This ensures that non-resident investors can still access and trade these securities in the secondary market without restrictions.

Now, investments by FPIs in new G-Secs of 14-year and 30-year tenors must be made under the investment limits and conditions as prescribed by the RBI.

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