**Summary:**
This Reserve Bank of India (RBI) circular, reference number RBI/2022-23/86 FMRD.FMID.No.0414.01.006/2022-23, dated July 07, 2022, announces the inclusion of additional government securities under the Fully Accessible Route (FAR) for nonresident investors. This action follows the press release on Liberalisation of Forex Flows dated July 06, 2022. The FAR, introduced in March 2020, allows unrestricted investment by nonresidents in specified categories of Central Government securities. This circular designates the following securities, as well as all new issuances of Government securities of 7-year and 14-year tenors, as specified securities under the FAR, effective immediately:
* IN0020220011: 7.10 GS 2029
* IN0020220029: 7.54 GS 2036
The directives within the circular are issued under Section 45W of Chapter IIID of the Reserve Bank of India Act, 1934. For inquiries, contact the Financial Markets Regulation Department, Central Office Building, 9th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001, India. Telephone: 91-22-2260 1000, Fax: 91-22-22702290, Email: cgmfmrdrbi.org.in. The circular is issued by Dimple Bhandia, Chief General Manager.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the country's financial system.
Fully Accessible Route (FAR): A scheme introduced by the Reserve Bank of India to allow nonresident investors to invest in certain Government securities without restrictions.
Government Securities: Debt instruments issued by the Government of India to finance its fiscal deficit.
Union Budget 2020-21: The annual financial statement presented by the Government of India for the fiscal year 2020-21.
Central Government: The executive, legislative, and judicial branches of the government of India.
A.P. DIR Series Circular No. 25: A circular issued by the Reserve Bank of India related to foreign exchange regulations.
Reserve Bank of India Act, 1934: The legislation that established the Reserve Bank of India and defines its powers and functions.
Mumbai, Maharashtra: The location of the Central Office Building of the Financial Markets Regulation Department of the Reserve Bank of India.
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2022-23/86
FMRD.FMID.No.04/14.01.006/2022-23 July 07, 2022
To
All participants in Government Securities market
Madam/Sir,
‘Fully Accessible Route’ for Investment by Non-residents in Government Securities –
Additional specified securities
Please refer to paragraph 3 of the press release on “Liberalisation of Forex Flows” dated July
06, 2022 regarding inclusion of additional ‘specified securities’ under the Fully Accessible
Route (FAR) for investments in Government securities by non-residents.
2. The Reserve Bank introduced the FAR in pursuance of the announcement made in the
Union Budget 2020-21 that certain specified categories of Central Government securities
would be opened fully for non-resident investors without any restrictions, apart from being
available to domestic investors as well, vide A.P. (DIR Series) Circular No. 25 dated March
30, 2020. The Government Securities that were eligible for investment under the FAR
(‘specified securities’) were notified by the Bank, vide circular no.
FMRD.FMSD.No.25/14.01.006/2019-20 dated March 30, 2020.
3. In addition, it has been decided to designate the two securities listed in the following Table
as well as all new issuances of Government securities of 7-year and 14-year tenors as
‘specified securities’ under the FAR. Accordingly, these securities will, henceforth, be eligible
for investment under the FAR.
Table: Additional ‘specified securities’ under the Fully Accessible Route
Sr. No. ISIN Security
1 IN0020220011 7.10% GS 2029
2 IN0020220029 7.54% GS 2036
�वत्तीय बाज़ार �व�नयमन �वभाग,क�द्र�य कायार्लय भवन, नौवीं मंिजल, शह�द भगत �सहं माग,र् फोटर्, मुंबई–400001.भारत
फोन: (91-22) 2260 1000,फैक्स: (91-22) 22702290 ई-मेल: cgmfmrd@rbi.org.in
Financial Markets Regulation Department, Central Office Building, 9th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001. India
Tel: (91-22) 2260 1000, Fax: (91-22) 22702290 e-mail- cgmfmrd@rbi.org.in
�हन्द� आसान है, इसका प्रयोग बढ़ाइए4. The Directions contained in this circular have been issued under Section 45W of Chapter
IIID of the Reserve Bank of India Act, 1934 and are without prejudice to permissions/
approvals, if any, required under any other law.
5. These Directions shall be applicable with immediate effect.
Yours faithfully,
(Dimple Bhandia)
Chief General Manager
2