RBI Issues Draft on Rupee Interest Rate (IR) Derivatives Directions 2020

The Reserve Bank have proposed to allow foreign portfolio investors (FPIs) to undertake the rupee interest rate derivatives which is subject to a ceiling of ₹5,000 crore. These directions aim to encourage high non-resident participation, to enhance the role of domestic market makers in the other market, to improve transparency and to achieve better regulatory ..

Month: Current Affairs - September, 2020

Category: Economy & Banking Current Affairs

Topics: Foreign Portfolio Investment • Foreign Portfolio Investors • Futures contract • rupee interest rate derivatives

Forex Reserves of India are rising

The Forex Reserves of India are increasing and are to hit 500 billion USD soon. In May 2020, the Indian Forex Reserves touched an all time high of 493 billion USD. What is Foreign Exchange Reserve? The Foreign Exchange Reserves are the reserve assets that are held by the central bank in foreign currencies. It ..

Month: Current Affairs - June, 2020

Category: International Current Affairs

Topics: FDI • FDI Policy • Foreign Direct Investment (FDI) • Foreign exchange reserves • Foreign Portfolio Investment • Forex Reserves • IMF • Special drawing rights

SEBI Proposes Changes to FPI rules

The HR Khan committee constituted by the Securities and Exchange Board of India (SEBI) has proposed wide-ranging changes to the foreign portfolio investment (FPI) regime. The changes proposed are aimed at boosting capital flows into the country by improving the ease of doing business, especially for large and well-regulated global institutions. Recommendations of the HR ..

Topics: Ease of Doing Business • FDI • Foreign Portfolio Investment • FPI regime • HR Khan committee • infrastructure investment trusts • real estate investment trusts • SEBI • Securities and Exchange Board of India

RBI withdraws 20% limit on investments by FPIs in Corporate Bonds

The Reserve Bank of India (RBI) has withdrawn the earlier order which stipulated a 20% limit on investments by FPIs in Corporate Bonds. Why the limit was imposed and why it is being withdrawn? During the review of the FPI investment in corporate debt in April 2018, the limit was introduced to incentivize the FPIs to maintain a ..

Month: Current Affairs - February, 2019

Topics: Corporate bond • FDI • Foreign Portfolio Investment • FPI • RBI • Reserve Bank of India