**Policy Summary: Inclusion of Sovereign Green Bonds under the Fully Accessible Route (FAR) for Non-Resident Investment**
This circular, reference number RBI/2023-24/81 FMRD.FMID.No.0414.01.006/2023-24, issued by the Reserve Bank of India (RBI) on November 08, 2023, announces the inclusion of Sovereign Green Bonds issued by the Government in fiscal year 2023-24 as specified securities eligible for investment under the Fully Accessible Route (FAR) for non-resident investors. This designation allows non-resident investors to invest in these bonds without restrictions, aligning with the FAR framework introduced on March 30, 2020, via A.P. DIR Series Circular No. 25. The decision supplements previous circulars (FMRD.FMSD.No.2514.01.006/2019-20 dated March 30, 2020, FMRD.FMID.No.0414.01.006/2022-23 dated July 07, 2022 and FMRD.FMID.No.0714.01.006/2022-23 dated January 23, 2023) that specified other government securities eligible under FAR. The directive, issued under Section 45W of Chapter IIID of the Reserve Bank of India Act, 1934, takes effect immediately.
For further information, contact Dimple Bhandia, Chief General Manager, Financial Markets Regulation Department, Reserve Bank of India, Central Office Building, 9th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001, India. Tel: +91 22 2260 1000, Fax: +91 22 2270 2290, email: cgmfmrd@rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the financial system.
Government Securities market: The financial market where government-issued debt instruments are traded.
Fully Accessible Route (FAR): A channel introduced by the Reserve Bank of India allowing nonresident investors to invest in specified Central Government securities without restrictions.
Sovereign Green Bonds: Bonds issued by the Government of India to finance environmentally friendly projects.
A.P. DIR Series Circular No. 25: A circular issued by the Reserve Bank of India on March 30, 2020, related to the Fully Accessible Route (FAR).
Reserve Bank of India Act, 1934: The legislation that governs the functioning and powers of the Reserve Bank of India.
Financial Markets Regulation Department: A department within the Reserve Bank of India responsible for regulating financial markets.
Mumbai, Maharashtra: The city and state where the central office of the Financial Markets Regulation Department of the Reserve Bank of India is located.
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2023-24/81
FMRD.FMID.No.04/14.01.006/2023-24 November 08, 2023
To
All participants in Government Securities market
Madam/Sir,
‘Fully Accessible Route’ for Investment by Non-residents in Government Securities –
Inclusion of Sovereign Green Bonds
A reference is invited to the Press Release on ‘Issuance Calendar for Marketable Dated
Securities for October 2023 - March 2024’ dated September 26, 2023, issued by the Reserve
Bank, notifying, inter alia, the issuance calendar for Sovereign Green Bonds for the fiscal year
2023-24. Attention is also invited to the Fully Accessible Route (FAR) introduced by the
Reserve Bank, vide A.P. (DIR Series) Circular No. 25 dated March 30, 2020, wherein certain
specified categories of Central Government securities were opened fully for non-resident
investors without any restrictions, apart from being available to domestic investors as well.
2. The Government Securities that are 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, circular no. FMRD.FMID.No.04/14.01.006/2022-23 dated July 07,
2022 and circular no. FMRD.FMID.No.07/14.01.006/2022-23 dated January 23, 2023.
3. It has now been decided to also designate all Sovereign Green Bonds issued by the
Government in the fiscal year 2023-24 as ‘specified securities’ under the FAR.
4. 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
�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 बढ़ाइए