FPIs can invest in debt securities issued by InvITs, REITS: RBI

The Reserve Bank on Tuesday said FPIs have been permitted to invest in debt securities issued by Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) by Foreign Portfolio Investors (FPIs).

Necessary amendments to Foreign Exchange Management (Debt Instruments) Regulations, 2019 were earlier notified in October.

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An announcement was made in the Union Budget 2021-22 that debt financing of InvITs and REITs by Foreign Portfolio Investors (FPIs) will be enabled by making suitable amendments in the relevant legislations.

Accordingly, it has been decided to permit FPIs to invest in debt securities issued by InvITs and REITs, the RBI said in a circular.

"FPIs can acquire debt securities issued by InvITs and REITs under the Medium-Term Framework (MTF) or the Voluntary Retention Route (VRR)," it said.

Such investments shall be reckoned within the limits and shall be subject to the terms and conditions for investments by FPIs in debt securities under the respective regulations of MTF and VRR.