The Reserve Bank of India on Thursday revised the investment limit under the Voluntary Retention Route (VRR) for investments by foreign portfolio investors (FPIs) to Rs 1,50,000 crore from Rs 75,000 crore earlier, and the revised scheme will be open for allotment from January 24, 2020. The Reserve Bank of India introduced the Voluntary Retention Route (VRR) for Investments by Foreign Portfolio Investors (FPIs) on March 01, 2019. An amount of ₹ 75, 000 crores was offered for investment in two tranches so far. As on December 31, 2019, around ₹ 54,300 crores has already been invested under the scheme. Based on the feedback received, and in consultation with the Government, the Bank has made certain amendments in the scheme to increase its operational flexibility.
Investment limits shall be available 'on tap' and allotted on 'first come, first served' basis, and the 'tap' shall be kept open till the limit is fully allotted, RBI said in a release. The minimum retention period shall be three years. FPIs may apply for investment limits online to Clearing Corporation of India (CCIL) through their respective custodians, it added. CCIL will separately notify the operational details of application process and allotment.
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