This episode provides an in-depth look at recent regulatory developments affecting Government Securities, investment limits for Foreign Portfolio Investors, and innovative regulatory frameworks in India.

The Reserve Bank of India has confirmed that Foreign Portfolio Investors (FPIs) will maintain the same investment limits for the fiscal year 2026-27: 6% in Government Securities, 2% in State Government Securities, and 15% in corporate bonds. Additionally, investments under the Voluntary Retention Route are now included in the General Route limits effective April 1, 2026, superseding prior circulars.

SEBI’s Chairman introduced the Inter-operable Regulatory Sandbox (IoRS), a pioneering platform enabling entities to test hybrid financial products involving multiple regulators via a single application. This platform mandates adherence to the Principal Regulator’s sandbox framework coordinated with Associate Regulators, with no application fee but possible sandbox fees.

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Articles mentioned:

1. Limits for investment in debt and sale of Credit Default Swaps by FPIs
2. Address by Chairman SEBI at CII 19th Corporate Governance Summit