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FPIs set to seek clarity from RBI, Sebi on debt default resolution

This comes after the central bank hiked the short-term investment limit for FPIs in both corporate and government debt, last week, to 30 per cent from 20 per cent

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Illustration by Binay Sinha

3 min read Last Updated : Jan 25 2020 | 11:52 PM IST

Foreign portfolio investors (FPIs) are likely to seek clarity from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) on the recourse available to them in case of defaults in their corporate debt portfolio.

This comes after the central bank hiked the short-term investment limit for FPIs in both corporate and government debt, last week, to 30 per cent from 20 per cent.

FPIs do not come under the RBI’s June 7 circular on stressed asset resolution, which covers banks, term-financial institutions, small finance banks, and non-banking financial companies (be they deposit

Topics : Foreign portfolio investor Reserve Bank of India RBI Sebi

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