‘Fully Accessible Route’ for Investment by Non-residents in Government Securities - (specified securities)

Last updated: 31 March 2020

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The Reserve Bank of India has introduced a 'Fully Accessible Route' (FAR) allowing non-resident investors to invest in certain government securities without restrictions. This route, effective from April 1, 2020, opens up specific central government securities to both domestic and non-resident investors. The Reserve Bank will designate eligible securities, which will remain accessible until maturity.

RBI/2019-20/201 FMRD.FMSD.No.25/14.01.006/2019-20 March 30, 2020 To All participants in Government Securities market Madam/Sir, Fully Accessible Route for Investment by Non-residents in Government Securities A reference is invited to the announcement made in the Union Budget 2020-21

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FAQ :

The Fully Accessible Route (FAR) is a new channel established by the Reserve Bank of India for non-resident investors to invest in specified government securities without any restrictions.

Non-resident investors can invest in government securities through the FAR. These specified securities are also available to domestic investors.

The directions for the Fully Accessible Route shall come into effect from April 1, 2020.

The Reserve Bank will notify the eligible government securities, referred to as 'specified securities'. Additionally, all new issuances of government securities with 5-year, 10-year, and 30-year tenors from the financial year 2020-21 will be eligible.

Yes, once designated as 'specified securities', they shall remain eligible for investment under the FAR until their maturity.

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Notification No : RBI/2019-20/201 FMRD.FMSD.No.25/14.01.006/2019-20
Published in Community & General
Source : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11850&Mode=0

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