Foreign Investment in India in Government Securities

On a review, to encourage longer term flows, it has now been decided by the Reserve Bank that foreign investment by all eligible investors including Registered Foreign Portfolio Investors (RFPIs) shall henceforth be permitted only in Government dated securities having residual maturity of one year and above and existing investments in T-bills and Government dated securities of less than one year residual maturity shall be allowed to taper off on maturity/ sale.