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Date: 2024-11-07 Category: Not Applicable State: Union Government Country: India

‘Fully Accessible Route’ for Investment by Non-residents in Government Securities – Inclusion of Sovereign Green Bonds

Issued by Reserve Bank of India · Not Applicable

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Executive Summary & Key Takeaways

**Summary:** This Reserve Bank of India (RBI) circular, reference number RBI/2024-25/88 FMRD.FMD.No.0614/01.006/2024-25, dated November 07, 2024, addresses all participants in the Government Securities market, concerning the Fully Accessible Route (FAR) for nonresident investment in Government Securities and the inclusion of Sovereign Green Bonds. The circular designates Sovereign Green Bonds with a 10-year tenor, issued by the Government in the second half of fiscal year 2024-25, as specified securities eligible for investment under the FAR. This expands the categories of Central Government securities fully open to nonresident investors without restrictions, alongside domestic investors, as initially introduced via A.P. DIR Series Circular No. 25 dated March 30, 2020. The circular references previous circulars that specified securities eligible for investment under the FAR: FMRD.FMSD.No.2514/01.006/2019-20 dated March 30, 2020; FMRD.FMID.No.04/14.01.006/2022-23 dated July 07, 2022; FMRD.FMID.No.07/14.01.006/2022-23 dated January 23, 2023; FMRD.FMID.No.04/14.01.006/2023-24 dated November 08, 2023; and FMRD.FMID.No.03/14.01.006/2024-25 dated July 29, 2024. This decision is in line with the Press Release on Issuance Calendar for Marketable Dated Securities for October 2024 – March 2025, dated September 26, 2024, which notified the issuance calendar for Sovereign Green Bonds for the second half of fiscal year 2024-25. The directions within the circular are issued under Section 45W of Chapter IIID of the Reserve Bank of India Act, 1934, and are effective immediately. For inquiries, contact the Financial Markets Regulation Department, Central Office Building, 9th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001, India. Phone: +91 22 2260 1000. Email: cgmfmrd@rbi.org.in.

Key Entities Referenced

Reserve Bank of India: The central bank of India, responsible for regulating the country's financial system. Government Securities: Debt instruments issued by the government to finance its expenditures. Sovereign Green Bonds: Bonds issued by the government to finance environmentally friendly projects. Fully Accessible Route (FAR): A scheme introduced by the Reserve Bank of India allowing non-resident investors to invest in specified government securities without restrictions. 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 of the Reserve Bank of India. Mumbai, Maharashtra: The location of the Central Office Building of the Financial Markets Regulation Department.
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भारतीय � रज़वर् बैंक RESERVE BANK OF INDIA www.rbi.org.in RBI/2024-25/88 FMRD.FMD.No.06/14.01.006/2024-25 November 07, 2024 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 2024 - March 2025’ dated September 26, 2024, issued by the Reserve Bank, notifying, inter alia, the issuance calendar for Sovereign Green Bonds for the second half of the fiscal year 2024-25. 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 the following circulars: a) FMRD.FMSD.No.25/14.01.006/2019-20 dated March 30, 2020; b) FMRD.FMID.No.04/14.01.006/2022-23 dated July 07, 2022; c) FMRD.FMID.No.07/14.01.006/2022-23 dated January 23, 2023; d) FMRD.FMID.No.04/14.01.006/2023-24 dated November 08, 2023; and e) FMRD.FMID.No.03/14.01.006/2024-25 dated July 29, 2024. 3. It has now been decided to also designate Sovereign Green Bonds of 10-year tenor issued by the Government in the second half of the fiscal year 2024-25 as ‘specified securities’ under the FAR. �वत्तीय बाज़ार �व�नयमन �वभाग,केंद्र�य कायार्लय भवन, नौवीं मंिजल, शह�द भगत �सहं माग,र् फोटर्, मुंबई–400001.भारत फोन: (91-22) 2260 1000, 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, e-mail- cgmfmrd@rbi.org.in िह�ी 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

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