Current Affairs - Miscellaneous - Discussion

Securities and Exchange Board of India (SEBI), the markets regulator, withdrew the 20% limit on investments by Foreign Portfolio Investors (FPIs) in corporate bonds of an entity. SEBI withdrew the restriction in accordance with a circular issued by the Reserve Bank of India (RBI). In 2018 June, the Securities and Exchange Board of India had mandated that no FPI shall have an exposure of more than 20% of its corporate bond portfolio to a single corporate. However, in February RBI lifted the restriction in view of market feedback. To give effect to the directions of the RBI, SEBI said provisions of its June 2018 circulars with respect to exposure of more than 20% stands withdrawn with immediate effect.