SEBI allows FPI Investment in Municipal Bond
- On 8th May, 2019, SEBI released a circular allowing Foreign Portfolio Investors (FPI) to invest in municipal bonds.
- The circular came out after the RBI permitted FPIs to invest in municipal bonds as a measure to broaden access of non–resident investors to debt instruments in the country.
- As per the RBI, foreign investment in municipal bonds should be within the limits set for FPI investment in State Development Loans (SDLs). The limits for FPI investment in SDLs is 2% of outstanding stock of ....
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