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Monetary policy review: RBI relaxes norms for FPI investment

RBI allows foreign portfolio investors (FPI) to take exposures of more than 20% in a corporate entity

RBI, RESERVE BANK OF INDIA, CENTRAL BANK

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Going by the events leading to the October board meeting and the proceedings of the last three meetings, it’s obvious that the government will not let loose the pressure to change the way the Indian central bank operates

Anup Roy Mumbai

Last Updated : Feb 08 2019 | 1:07 AM IST

The Reserve Bank of India (RBI), in its sixth bi-monthly monetary policy review, initiated a string of measures for the bond and currency markets.

Among them is allowing foreign portfolio investors (FPI) to take exposures of more than 20 per cent in a corporate entity.

The central bank had limited such an exposure to only 20 per cent of the portfolio. The curbs were put in April 2018, leading to protests from the FPIs.

Moreover, the rules also restricted financing for some sectors, such as real estate, that face difficulties in getting loans from banks.

With the restrictions lifted now, real estate and unrated

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