NEW DELHI: The Reserve Bank of India (RBI) has given a go-ahead to Foreign Portfolio Investors (FPIs) acquiring debt securities issued by Infrastructure investment Trusts (InvITs) and Real Estate Investment Trusts (REITs).
Earlier, the government had made an announcement in the Union Budget 2021-22 that debt financing of InvITs and REITs by FPIs would be enabled by making suitable amendments in the relevant legislations.
In order to facilitate this, necessary amendments to Foreign Exchange Management (Debt Instruments) Regulations, 2019 have been made.
Investments by FPIs in debt papers of InvITs and REITs can be made under the Medium-Term Framework (MTF) or the Voluntary Retention Route (VRR). Such investments will be subjected to limits and the terms and conditions for investments by Foreign Portfolio Investors in debt securities under the respective regulations of MTF and VRR.