Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 (Updated as on May 08, 2025)

भारतीय � रज़वर् बैंक RESERVE BANK OF INDIA www.rbi.org.in RBI/2024-25/126 FMRD.FMD.No.10/14.01.006/2024-25 January 07, 2025 (Updated as on May 08, 2025) To, All Authorised Persons Madam/Sir, Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 In exercise of the powers conferred under section 6, read with section 47 of the Foreign Exchange Management Act, 1999, the Reserve Bank has issued the following regulations to regulate non-resident investment in debt instruments in India: a. Foreign Exchange Management (Permissible Capital Accounts Transactions) Regulations, 2000 notified vide Notification No. FEMA 1/2000-RB dated May 03, 2000, as amended from time to time; b. Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 notified vide Notification No. FEMA 3(R)/2018-RB dated December 17, 2018, as amended from time to time; and c. Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified vide Notification No. FEMA. 396/2019-RB dated October 17, 2019, as amended from time to time. 2. The Reserve Bank has also been issuing necessary directions in the form of A.P. (DIR Series) Circulars under the aforesaid regulations as also directions under Section 45W of the Reserve Bank of India Act, 1934, at various times relating to non-resident investment in debt instruments in India. Such Directions issued through various �वत्तीय बाज़ार �व�नयमन �वभाग,केंद्र�य कायालर् य भवन, नौवीं मिंजल, 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 �हन्द� आसान है, इसका प्रयोग बढ़ाइएcirculars, as set out in Annex – 1 to these Directions, have been consolidated and issued in this Master Direction. 3. AD Category-I banks may bring the contents of the Master Direction to the notice of their constituents. 4. The Master Direction has been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and Section 45W of the Reserve Bank of India Act, 1934 and are without prejudice to permissions/ approvals, if any, required under any other law. Yours faithfully, (Dimple Bhandia) Chief General Manager 2भारतीय � रज़वर् बैंक RESERVE BANK OF INDIA www.rbi.org.in FINANCIAL MARKETS REGULATION DEPARTMENT Notification No. FMRD.FMD.11/14.01.006/2024-25 dated January 07, 2025 Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 The Reserve Bank of India (hereinafter called the Reserve Bank) hereby issues the following Directions in exercise of the powers conferred under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 and under section 45W of the Reserve Bank of India (RBI) Act, 1934 1. Short title, commencement, and applicability of the Directions (i) These Directions shall be called the Master Direction - Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025. (ii) These Directions shall be applicable with immediate effect. (iii) These Directions shall be applicable to all transactions by eligible non-residents in debt instruments. Part – 1 2. Definitions (i) In these Directions, unless the context otherwise requires: (a) “Corporate debt securities” shall include all instruments specified in sub- paragraph – A of paragraph 1 of Schedule 1 to Foreign Exchange Management (Debt Instruments) Regulations, 2019, other than Government securities and municipal bonds as specified at clause (a) and clause (k) of that sub-paragraph, as amended from time to time. (b) “Committed Portfolio Size” (CPS) for a Foreign Portfolio Investor (FPI) shall mean the amount allotted to that FPI under the Voluntary Retention Route. 1(c) “Default bonds” shall mean Non-Convertible Debentures/bonds, which are under default, either fully or partly, in the repayment of principal on maturity or principal instalment in the case of amortising bond. (d) “Electronic Trading Platform (ETP)” shall have the same meaning as assigned to it in Section 2(1)(iii) of the Electronic Trading Platforms (Reserve Bank) Directions, 2018 dated October 05, 2018, as modified from time to time; (e) “Foreign Portfolio Investor (FPI)” shall mean a person registered in accordance with the provisions of the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019, as amended from time to time. (f) “Government security” shall mean a security as defined under section 2(f) of the Government Securities Act, 2006. (g) “Long-Term FPIs” shall mean Sovereign Wealth Funds, Multilateral Agencies, Pension / Insurance / Endowment Funds and foreign Central Banks. (h) “Minor violations” shall mean violations that are, in the considered opinion of the custodians, unintentional, temporary in nature or have occurred on account of reasons beyond the control of FPIs, and in all cases are corrected on detection. (i) “Multilateral Financial Institution”, for the purpose of these Directions, shall mean an FPI which is a Multilateral Financial Institution in which Government of India is a member. (j) “Non-resident” shall mean a person resident outside India as defined under section 2(w) of FEMA, 1999. (k) “Over-the-Counter (OTC) Markets” shall mean markets where transactions are undertaken in any manner other than on exchanges and shall include those executed on electronic trading platforms (ETPs). (l) “Person resident outside India” shall have the same meaning as assigned to it under section 2(w) of FEMA, 1999. 2(m) “Real Estate Business” shall have the same meaning as assigned to it under the note (6) to item no. 10.2 in the Table in Schedule – I to Foreign Exchange Management (Non-debt Instruments) Rules, 2019. (n) “Recognised stock exchange” shall have the same meaning as assigned to it in section 2(f) of the Securities Contracts (Regulations) Act, 1956. (o) “Related FPIs” shall mean ‘investor group’ as defined in Regulation 22(3) of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019. (p) “Repo” shall have the same meaning as assigned to it in Section 45U (c) of RBI Act, 1934; and for the purpose of these Directions excludes repo conducted under the Reserve Bank’s Liquidity Adjustment Facility. (q) “Retention Period” shall mean the time period that an FPI voluntarily commits for retaining the CPS in India under the Voluntary Retention Route. (r) “Reverse Repo” shall have the same meaning as assigned to it in Section 45U (d) of RBI Act, 1934; and for the purpose of these Directions excludes reverse repo conducted under the Reserve Bank’s Liquidity Adjustment Facility. (s) “Short-term Investments” shall mean investments with residual maturity up to one year. (t) “Specified securities” shall mean Central Government securities as periodically notified by the Reserve Bank for investment under the Fully Accessible Route. (ii) Words and expressions used but not defined in these Directions, shall have the meaning assigned to them in FEMA, 1999, and the RBI Act, 1934. 3. Investment Channels (i) The following shall be the channels for investment in debt instruments by non- residents: 3(a) General Route1 for investment in Government securities and corporate debt securities by FPIs subject to specified investment limits and macro- prudential limits; (b) Voluntary Retention Route2 for investments in Government securities and corporate debt securities, free of certain macro-prudential limits applicable to FPI investments in debt markets under the General Route, by FPIs that commit to remain invested for a stipulated retention period; (c) Fully Accessible Route3 for investments by non-residents in certain specified categories of Central Government securities (‘specified securities’) without any restriction; and (d) Scheme for Trading and Settlement of Sovereign Green Bonds issued by the Central Government by eligible foreign investors in the International Financial Services Centre (IFSC). Part – 2 4. General Route 4.1. Eligible non-residents: Foreign Portfolio Investors 4.2. Eligible instruments and investment limits Sr. No. Eligible instruments Investment limits (i) Central Government securities 6 per cent of the outstanding (including Treasury Bills), other than stock of Central Government those included as ‘specified securities other than those securities’ under the Fully Accessible included as ‘specified’ Route securities’ under the Fully Accessible Route (ii) State Government securities 2 per cent of the outstanding stock of State Government securities (iii) Corporate debt securities 15 per cent of the outstanding stock of corporate bonds 1 Introduced vide A.P. (DIR Series) Circular No 19 dated October 6, 2015 and as amended from time to time. 2 Introduced vide A.P. (DIR Series) Circular No. 21 dated March 01, 2019, as amended from time to time. 3 Introduced vide A.P. (DIR Series) Circular No. 25 dated March 30, 2020, as amended from time to time. 4Note: (a) The corresponding absolute values of the investment limits shall be notified by the Reserve Bank for each financial year. (b) Investments in municipal bonds shall be reckoned under the investment limit for State Government securities. 4.3. Investment in Government securities shall be in terms of the following: (i) Minimum residual maturity requirement: An FPI may invest in Central Government securities (including Treasury Bills) and State Government securities without any minimum residual maturity requirement. (ii) Short-term investment limit: Investments by an FPI in Central Government securities (including Treasury Bills) and State Government securities with residual maturity up to one year shall not exceed 30 per cent of the total investment of the FPI in each category. The short-term investment limit shall apply on investments on an end-of-day basis. Provided that the limit shall not apply: (a) If the short-term investments of an FPI consist entirely of investments made on or before April 27, 2018; and (b) To investments by an FPI made between July 08, 2022 and October 31, 2022 (both dates included). (iii) Security-wise limit: FPI investment, in aggregate, in any Central Government security shall not exceed 30 per cent of the outstanding stock of the security. (iv) Concentration limit: Investment in Central Government securities and State Government securities by an FPI (including its related FPIs) shall not exceed 15 per cent of prevailing investment limit for each category in case of long-term FPIs and 10 per cent of prevailing investment limit for other FPIs. (v) Reinvestment of coupons and proceeds of sale / redemption: (a) Reinvestment of coupon by FPIs in Central Government securities and State Government securities shall be reckoned within the limit for investment stipulated for Central Government securities and State Government securities, as applicable. FPIs may, however, reinvest coupons without any constraint. Such reinvestments will be added to the amount of utilisation at the time of periodic re-setting of limits. 5(b) FPIs may reinvest the proceeds of any sale/redemption of Central Government securities and State Government securities within two working days from the date of sale/redemption (including the date of sale/redemption) irrespective of the availability of limits in the category. Any reinvestment beyond two working days shall be subject to availability of limits for that category. (vi) The Clearing Corporation of India Ltd. (CCIL) shall monitor the utilisation of the investment limits for FPI investment in Central Government securities and State Government securities as well as the security-wise limit for investment in Central Government securities. CCIL shall disseminate the utilisation levels of the aforesaid limits. (vii) The primary responsibility of complying with all applicable limits for investment in Government securities shall lie with the FPIs and custodians. 4.4. Investment in corporate debt securities shall be in terms of the following: (i) Minimum residual maturity requirement: An FPI may invest only in corporate debt securities with original/residual maturity of above one year. (ii) An FPI shall not invest in: (a) corporate debt securities with any optionality clause that is exercisable within a year from the date of investment; (b) debt mutual fund schemes with maturity or Macaulay duration of the portfolio less than one year4; (c) partly paid debt instruments; and (d) amortised corporate debt instruments where the duration of the instrument is up to one year. (iii) i[***] (iv) Issue-wise limit: Investment by any FPI, including investments by related FPIs, shall not exceed 50 per cent of any issue of a corporate debt security. In case an FPI, including related FPIs, had invested in more than 50 per cent of any single issue before this stipulation came into effect, vide A.P. (DIR Series) Circular No. 4 The categorization of debt mutual fund schemes and meaning of the expression ‘Macaulay duration of the portfolio’ shall be as per the SEBI’s Master Circular for Mutual Funds dated June 27, 2024, as amended from time to time. 631 dated June 15, 2018, the FPIs shall not make further investments in that issue until this limit is complied with. (v) ii[***] (vi) FPI investment in unlisted corporate debt securities in the form of non-convertible debentures/bonds issued by public or private companies shall be subject to end- use restrictions on investments in real estate business, capital market and purchase of land. (vii) An FPI may invest in ‘to be listed’ corporate debt securities. If the corporate debt security is not listed within such period prescribed by Securities and Exchange Board of India (SEBI) for the purpose, the FPI shall immediately sell the corporate debt security to the issuer or to a third party. For this purpose, the terms of offer to an FPI investing in such securities shall contain a clause requiring the issuer to immediately redeem/buyback the corporate debt security in such an eventuality. (viii) Exemptions (a) The minimum residual maturity requirement iii[***] and the issue-wise limit shall not apply to investments by FPIs in the following securities: (i) Security Receipts and debt instruments issued by Asset Reconstruction Companies; (ii) Debt instruments issued by an entity under the Corporate Insolvency Resolution Process as per a resolution plan approved by the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016; and (iii) Default bonds. (b) The minimum residual maturity requirement shall not apply to investments by FPIs in the following securities: (i) Any certificate or instrument issued by a special purpose vehicle (SPV) set up for securitisation of asset/s where banks, Financial Institutions or Non Banking Financial Companies are originators; and/or (ii) Any certificate or instrument issued and listed in terms of the Securities and Exchange Board of India (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008, as amended from time to time. (c) The issue-wise limit shall not apply to investments in corporate debt securities by multilateral financial institutions. 7(ix) An FPI which proposes to acquire default bonds shall disclose to the Debenture Trustees the terms of its offer to the existing debenture holders / beneficial owners from whom it is acquiring the bonds. (x) Utilization of FPI investment limits in corporate debt securities shall be monitored by the depositories registered with SEBI in accordance with the applicable regulations/directions/guidelines issued by SEBI from time to time. (xi) The primary responsibility of complying with all applicable limits for investment in corporate debt securities shall lie with the FPIs and custodians. Part – 3 5. Voluntary Retention Route (VRR) 5.1. Eligible investors: Foreign Portfolio Investors 5.2. Eligible instruments: (i) Any instrument listed under Schedule 1 to Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified, vide, Notification No. FEMA. 396/2019- RB dated October 17, 2019, other than units of domestic mutual funds or Exchange Traded Funds (ETFs) which invest less than or equal to 50 per cent in equity, as specified at 1A(d) of that schedule, and partly paid debt instruments. However, investments shall be permitted in ETFs that invest only in debt instruments. (ii) Repos and reverse repos, subject to the amount borrowed or lent under repo not exceeding 10 per cent of the investments by an FPI under VRR. Provided that: (a) FPI investment in unlisted corporate debt securities in the form of non- convertible debentures/bonds issued by public or private companies shall be subject to end-use restriction on investment in real estate business, capital market and purchase of land. (b) An FPI may invest in ‘to be listed’ corporate debt securities. If the corporate debt security is not listed within such period prescribed by SEBI for the purpose, the FPI shall immediately sell the corporate debt security to the issuer or to a third party. For this purpose, the terms of offer to an FPI investing in such securities shall contain a clause requiring the issuer to immediately redeem/buyback the corporate debt security in such an eventuality. 8(c) An FPI which proposes to acquire default bonds shall disclose to the Debenture Trustees the terms of its offer to the existing debenture holders / beneficial owners from whom it is acquiring the bonds. 5.3. Investment limit: ₹2,50,000 crore5 or higher, as may be notified by the Reserve Bank. The investment limit may be released in one or more tranches. (i) Allocation of investment limit (a) Allocation of investment amount to FPIs under this Route shall be made on tap and allotted on a ‘first come, first served’ basis or through an auction mechanism as detailed in Annex – 2. The mode of allotment shall be announced by the Reserve Bank for each tranche. (b) For allocation of investment amounts on tap, an FPI may apply for investment limit online to CCIL through their respective custodians. (c) The maximum investment limit which can be allotted to an FPI (including its related FPIs) shall be 50 per cent of the amount offered for each allotment by tap or through auction, in case of demand for more than 100 per cent of amount offered. (ii) Retention period: The minimum retention period shall be three years or as announced by the Reserve Bank for each tranche. The retention period shall commence from the date of allotment of limit. Provided that for an FPI that has availed additional time to invest in terms of the A.P.(DIR Series) Circular No.32 dated May 22, 2020, the retention period for the investments (committed by it at the time of allotment of investment limit) would be reset to commence from the date that the FPI invests 75 per cent of the Committed Portfolio Size (CPS). 5.4. Investments under the VRR (i) An FPI shall invest at least 75 per cent of its CPS within three months from the date of allotment and remain invested to a minimum extent of 75 per cent of the CPS at all times during the committed retention period. For this purpose, 5 Any investment limit allotted under VRR-Govt. or VRR-Corp. in terms of the Directions issued under A.P. (DIR Series) Circular No. 21 dated March 01, 2019 shall be deemed as investment limit under the overall limit in terms of para 5.3 of the Directions. 9investment shall include cash holdings in the Rupee accounts used for the VRR. The required investment amount shall be adhered to on an end-of-day basis. (ii) An FPI may, at its discretion, transfer its investments made under the General Route, if any, to the VRR. (iii) Custodians shall not permit any repatriation from the cash accounts of an FPI, if such transaction leads to the FPI’s assets falling below the minimum stipulated level of 75 per cent of CPS during the retention period. (iv) Income from investments through the VRR may be reinvested at the discretion of the FPI even if such investments are in excess of the CPS. (v) Investments made through the VRR shall not be subject to any minimum residual maturity requirement iv[***] or issue-wise limits applicable to corporate debt securities as specified for FPI investment under the General Route. 5.5. Exit provisions: (i) An FPI may, at the end of the retention period, opt to: (a) liquidate its portfolio and exit; or (b) shift its investments to the General Route, subject to availability of limit under the General Route; or (c) continue to hold its investments until maturity or sale, whichever is earlier; or (d) continue the investments for an additional identical retention period. In such a case, the FPI shall convey this decision to its custodian before the end of the committed retention period. The custodian, in turn, shall report the same to CCIL. (ii) An FPI desiring to exit its investments, fully or partly, under the VRR prior to the end of the retention period may do so by selling its investments to another FPI or FPIs. The FPI (or FPIs) buying such investment shall abide by all the terms and conditions applicable to the selling FPI under the VRR. 5.6. An FPI shall open one or more separate Special Non-Resident Rupee (SNRR) account(s) for investments through the VRR. All fund flows relating to investment through the VRR shall be reflected in such account(s). An FPI may open a separate security account for holding debt securities under the VRR. 5.7. Utilisation of limits and adherence to other requirements of the VRR shall be the responsibility of both the FPI and its custodian. Custodians shall ensure that 10appropriate legal documentation with FPIs are in place to enable the custodians to ensure that the Directions under the VRR are adhered to. Part – 4 6. Fully Accessible Route 6.1. Eligible investors: (i) Foreign Portfolio Investors, Non-Resident Indians and Overseas Citizens of India. (ii) Any other person resident outside India, as may be notified by the Reserve Bank from time to time. 6.2. Eligible instruments (‘specified securities’): (i) All securities included under the FAR on the date of issuance of these Directions (as set out in Annex – 3); all new issuances of 5-year, 7-year and 10-year tenors by the Central Government; and any other security that the Reserve Bank may notify in this regard. (ii) The Reserve Bank may add new tenors or change the tenors of new securities to be designated as ‘specified securities’ from time to time. (iii) ‘Specified securities’, once so designated, shall remain eligible for investment under the FAR until maturity. 6.3. FPI investment in “specified securities” under this Route shall not be subject to any investment limit or macro-prudential controls as applicable for investments in Government securities through the General Route. Part – 5 7. Investments in Sovereign Green Bonds issued by the Government of India may be made by eligible investors in the International Financial Services Centre in India. Such investment shall be in terms of the ‘Scheme for Trading and Settlement of Sovereign Green Bonds in the International Financial Services Centre in India’, notified by the Reserve Bank, vide CO.FMRD.FMIA.No.S242/11-01-051/2024-2025 dated August 29, 2024, as amended from time to time. 11Part – 6 8. Other Facilities A non-resident may undertake transactions in foreign exchange, interest rate and credit derivatives in terms of the following Directions: (i) Master Direction – Risk Management and Inter-Bank Dealings issued vide FMRD Master Direction No. 1/2016-17 dated July 05, 2016, as amended from time to time; (ii) Rupee Interest Rate Derivatives (Reserve Bank) Directions, 2019 issued vide FMRD.DIRD.19/14.03.046/2018-19 dated June 26, 2019, as amended from time to time; and (iii) Master Direction – Reserve Bank of India (Credit Derivatives) Directions, 2022, issued vide FMRD.DIRD.10/14.03.004/2021-22 dated February 10, 2022, as amended from time to time, read with A.P. (DIR Series) Circular No. 23 dated February 10, 2022 on Transactions in Credit Default Swap (CDS) by Foreign Portfolio Investors – Operational Instructions, as amended from time to time. 9. FPI investment in Government securities in OTC Markets (i) An FPI may participate in the Government securities market, both primary and secondary. (ii) An FPI may trade in the secondary market for Government securities through the primary members of NDS-OM, including by using the NDS-OM Web module. (iii) Payment of margin for transaction in Government securities: AD Cat-I Banks may lend to FPIs in accordance with their credit risk management frameworks for the purpose of placing margins with CCIL for the settlement of Government securities transactions by FPIs. (iv) Reporting of transactions in Government securities: All OTC trades in Government securities undertaken by FPIs (except transactions undertaken using the NDS-OM web module) shall be reported to the NDS-OM platform on the trade date within three hours after the close of trading hours for the Government securities market and in accordance with the operational guidance issued by Clearcorp Dealing Systems (India) Ltd in this regard. Note: 12(a) Information about trades undertaken by domestic counterparties with FPIs shall be disseminated by the Clearcorp Dealing Systems (India) Ltd. after one leg of the trade is reported on the NDS-OM platform by the domestic counterparty with a suitable qualifier to indicate that the trade is awaiting counterparty confirmation. (b) Domestic market participants, including domestic counterparties to transactions with FPIs, shall continue to report transactions to the NDS-OM platform as per extant practice. (v) Settlement of transaction in Government securities: OTC secondary market transactions in Government securities undertaken by FPIs may be settled on T+1 or on T+2 basis. However, transactions undertaken through the NDS-OM web module shall be settled only on a T+1 basis. 10. Amounts of investment in Central Government securities (including Treasury Bills), State Government securities and corporate debt securities shall be reckoned in terms of the face value of securities. Part – 7 11. Obligation to provide information sought by the Reserve Bank The Reserve Bank may call for information or statement or seek any clarification, which in the opinion of the Reserve Bank is relevant, from non-residents, custodians, or any other entity involved with non-resident investment in debt instruments. Such persons, agencies and participants shall furnish such information, statement or clarification within such time, and in the manner, as specified by the Reserve Bank, from time to time. 12. Dissemination of data The Reserve Bank or any other person authorised by the Reserve Bank, may publish any anonymised data related to transactions by non-residents in debt instruments. 13. Violation of Directions (i) Any transaction in breach of applicable investment limit or macro-prudential control shall not be accepted. Any transaction/investment in breach of applicable investment limit shall need to be reversed. 13(ii) Any violation by FPIs shall be subject to regulatory action as determined by SEBI. FPIs are permitted, with the approval of the custodian, to regularize minor violations immediately upon notice, and in any case, within five working days of the violation. Custodians shall report to SEBI all non-minor violations as well as minor violations that have not been regularised. 14. Investments by eligible investors under these Directions shall be governed by all other applicable provisions of FEMA, 1999, and the rules, regulations and directions issued thereunder by the Reserve Bank from time to time, unless otherwise specified. Yours faithfully, (Dimple Bhandia) Chief General Manager 14Annex – 1 List of circulars that are consolidated 1. A.P. (DIR Series) Circular No. 25 dated October 17, 2008 2. A.P. (DIR Series) Circular No. 55 dated April 29, 2011 3. A.P. (DIR Series) Circular No. 42 dated November 03, 2011 4. A.P. (DIR Series) Circular No. 89 dated March 01, 2012 5. A.P. (DIR Series) Circular No. 135 dated June 25, 2012 6. A.P. (DIR Series) Circular No. 7 dated July 16, 2012 7. A.P. (DIR Series) Circular No. 21 dated August 31, 2012 8. A.P. (DIR Series) Circular No. 45 dated October 22, 2012 9. A.P. (DIR Series) Circular No. 80 dated January 24, 2013 10. A.P. (DIR Series) Circular No. 111 dated June 12, 2013 11. A.P. (DIR Series) Circular No. 99 dated January 29, 2014 12. A.P. (DIR Series) Circular No. 104 dated February 14, 2014 13. A.P. (DIR Series) Circular No. 118 dated April 07, 2014 14. A.P. (DIR Series) Circular No. 13 dated July 23, 2014 15. A.P. (DIR Series) Circular No. 22 dated August 28, 2014 16. A.P. (DIR Series) Circular No. 71 dated February 03, 2015 17. A.P. (DIR Series) Circular No. 72 dated February 05, 2015 18. A.P. (DIR Series) Circular No. 73 dated February 06, 2015 19. FMRD.DIRD.06/14.03.007/2014-15 dated March 20, 2015 20. A.P. (DIR Series) Circular No. 6 dated July 16, 2015 21. A.P. (DIR Series) Circular No. 19 dated October 6, 2015 22. A.P. (DIR Series) Circular No. 31 dated November 26, 2015 23. A.P. (DIR Series) Circular No. 55 dated March 29, 2016 24. A.P. (DIR Series) Circular No. 4 dated September 30, 2016 25. FMRD.DIRD.08/14.03.007/2016-17 dated October 20, 2016 26. A.P. (DIR Series) Circular No. 19 dated November 17, 2016 27. A.P. (DIR Series) Circular No. 23 dated December 27, 2016 28. A.P. (DIR Series) Circular No. 43 dated March 31, 2017 29. A.P. (DIR Series) Circular No. 1 dated July 03, 2017 30. A.P. (DIR Series) Circular No. 7 dated September 28, 2017 i31. FMRD.DIRD.05/14.03.007/2017-18 dated November 16, 2017 32. A.P. (DIR Series) Circular No. 14 dated December 12, 2017 33. A.P. (DIR Series) Circular No. 22 dated April 06, 2018 34. A.P. (DIR Series) Circular No. 24 dated April 27, 2018 35. A.P. (DIR Series) Circular No. 26 dated May 01, 2018 36. A.P. (DIR Series) Circular No. 31 dated June 15, 2018 37. A.P. (DIR Series) Circular No. 19 dated February 15, 2019 38. A.P. (DIR Series) Circular No. 21 dated March 01, 2019 39. A.P. (DIR Series) Circular No. 22 dated March 01, 2019 40. A.P. (DIR Series) Circular No. 26 dated March 27, 2019 41. A.P. (DIR Series) Circular No. 33 dated April 25, 2019 42. A.P. (DIR Series) Circular No. 34 dated May 24, 2019 43. A.P. (DIR Series) Circular No. 18 dated January 23, 2020 44. A.P. (DIR Series) Circular No. 19 dated January 23, 2020 45. A.P. (DIR Series) Circular No. 24 dated March 30, 2020 46. A.P. (DIR Series) Circular No. 25 dated March 30, 2020 47. FMRD.FMSD.No.25/14.01.006/2019-20 dated March 30, 2020 48. A.P. (DIR Series) Circular No. 30 dated April 15, 2020 49. A.P. (DIR Series) Circular No. 32 dated May 22, 2020 50. A.P. (DIR Series) Circular No. 12 dated February 26, 2021 51. A.P. (DIR Series) Circular No. 14 dated March 31, 2021 52. A.P. (DIR Series) Circular No.05 dated May 31, 2021 53. A.P. (DIR Series) Circular No.06 dated June 4, 2021 54. FMRD.FMID.No.05/14.01.006/2021-22 dated June 7, 2021 55. A.P. (DIR Series) Circular No.16 dated November 08, 2021 56. A.P. (DIR Series) Circular No.22 dated February 10, 2022 57. A.P. (DIR Series) Circular No. 01 dated April 19, 2022 58. FMRD.FMID.No.04/14.01.006/2022-23 dated July 07, 2022 59. A.P. (DIR Series) Circular No.07 dated July 07, 2022 60. FMRD.FMID.No.07/14.01.006/2022-23 dated January 23, 2023 61. FMRD.FMID.No. 04/14.01.006/2023-24 dated November 08, 2023 62. FMRD.FMID.No.03/14.01.006/2024-25 dated July 29, 2024 63. FMRD.FMD.No.06/14.01.006/2024-25 dated November 07, 2024 iiAnnex – 2 Auction process for allocation of investment amount under VRR The auction process for allotment of investment amounts under the VRR shall be as under: a. An FPI shall bid two variables - the amount it proposes to invest and the retention period of that investment, which shall not be less than the minimum retention period applicable for that auction. b. An FPI is permitted to place multiple bids. c. The criterion for allocation under each auction shall be the retention period bid in the auction. d. Bids will be accepted in descending order of retention period, the highest first, until the amounts of accepted bids add up to the auction amount. e. Allotment at margin (i.e., at the lowest retention period accepted), in case the amount bid at margin is more than the amount available for allotment, shall be as below: i. The marginal bid shall be allocated partially such that the total acceptance amount matches the auction amount. ii. In case there are more than one marginal bids, allocation shall be made to the bid with the largest amount, and then in descending order of amount bid until the acceptance amount matches the auction amount. iii. In case the amount offered is the same for two or more marginal bids, the amount will be allocated equally. f. If an FPI has been allotted multiple bids in an auction, the CPS shall be reckoned for each bid separately. g. An FPI which has got CPS allocated under an auction will be eligible to participate in subsequent auction as well. iiiAnnex – 3 List of all 'Specified securities' included under the FAR (both outstanding and matured) S ISIN Security Description Date of issue Date of maturity No. 1 IN0020180454 07.26% GS 2029 14 January 2019 14 January 2029 2 IN0020180488 07.32% GS 2024 28 January 2019 28 January 2024 3 IN0020190032 07.72% GS 2049 15 April 2019 15 June 2049 4 IN0020190362 06.45% GS 2029 07 October 2019 07 October 2029 5 IN0020190396 06.18% GS 2024 04 November 2019 04 November 2024 6 IN0020200054 07.16% GS 2050 20 April 2020 20 September 2050 7 IN0020200070 05.79% GS 2030 11 May 2020 11 May 2030 8 IN0020200112 05.22% GS 2025 15 June 2020 15 June 2025 9 IN0020200153 05.77% GS 2030 03 August 2020 03 August 2030 10 IN0020200252 06.67% GS 2050 02 November 2020 17 December 2050 11 IN0020200278 05.15% GS 2025 09 November 2020 09 November 2025 12 IN0020200294 05.85% GS 2030 01 December 2020 01 December 2030 13 IN0020210012 05.63% GS 2026 12 April 2021 12 April 2026 14 IN0020210095 06.10% GS 2031 12 July 2021 12 July 2031 15 IN0020210186 05.74% GS 2026 15 November 2021 15 November 2026 16 IN0020210194 06.99% GS 2051 15 November 2021 15 December 2051 17 IN0020210244 06.54% GS 2032 17 January 2022 17 January 2032 18 IN0020220011 07.10% GS 2029 18 April 2022 18 April 2029 19 IN0020220029 07.54% GS 2036 23 May 2022 23 May 2036 20 IN0020220037 07.38% GS 2027 20 June 2022 20 June 2027 21 IN0020220060 07.26% GS 2032 22 August 2022 22 August 2032 22 IN0020220086 07.36% GS 2052 12 September 2022 12 September 2052 23 IN0020220102 07.41% GS 2036 19 December 2022 19 December 2036 24 IN0020220136 07.10% GOI SGrB 2028 27 January 2023 27 January 2028 25 IN0020220144 07.29% GOI SGrB 2033 27 January 2023 27 January 2033 26 IN0020220151 07.26% GS 2033 06 February 2023 06 February 2033 27 IN0020230010 07.06% GS 2028 10 April 2023 10 April 2028 28 IN0020230036 07.17% GS 2030 17 April 2023 17 April 2030 29 IN0020230051 07.30% GS 2053 19 June 2023 19 June 2053 30 IN0020230077 07.18% GS 2037 24 July 2023 24 July 2037 31 IN0020230085 07.18% GS 2033 14 August 2023 14 August 2033 32 IN0020230101 07.37% GS 2028 23 October 2023 23 October 2028 33 IN0020230135 07.32% GS 2030 13 November 2023 13 November 2030 34 IN0020230143 07.25% GOI SGrB 2028 13 November 2023 13 November 2028 35 IN0020230150 07.24% GOI SGrB 2033 11 December 2023 11 December 2033 iv36 IN0020230176 07.37% GOI SGrB 2054 23 January 2024 23 January 2054 37 IN0020240019 07.10% GS 2034 08 April 2024 08 April 2034 38 IN0020240050 07.04% GS 2029 03 June 2024 03 June 2029 39 IN0020240076 07.02% GS 2031 18 June 2024 18 June 2031 40 IN0020240126 06.79% GS 2034 07 October 2024 07 October 2034 41 IN0020240159 06.79% GOI SGrB 2034 02 December 2024 02 December 2034 42 IN0020240183 06.75% GS 2029 23 December 2024 23 December 2029 43 IN0020240191 06.79% GS 2031 30 December 2024 30 December 2031 vAnnex – 4 List of amendments to the Master Direction i Clause (iii) of paragraph 4.4 repealed, vide circular no. FMRD.FMD.No.01/14.01.006/2025- 26 dated May 08, 2025. Before the repeal the clause read as under: “Short-term investment limit: Investments by an FPI in corporate debt securities with residual maturity up to one year shall not exceed 30 per cent of the total investment of the FPI in corporate debt securities. The short-term investment limit shall apply on investments on an end-of-day basis. Provided that the limit shall not apply: (a) If the short-term investments of an FPI consist entirely of investments made on or before April 27, 2018; and (b) To investments by FPIs made between July 08, 2022, and October 31, 2022 (both dates included).” ii Clause (v) of paragraph 4.4 repealed, vide circular no. FMRD.FMD.No.01/14.01.006/2025- 26 dated May 08, 2025. Before the repeal the clause read as under: “Concentration limit: Investment in corporate debt securities by an FPI (including its related FPIs) shall not exceed 15 per cent of prevailing investment limit for these securities in case of long-term FPIs and 10 per cent of prevailing investment limit for other FPIs.” iii The words “short-term investment limit” in sub-clause (a) of clause (viii) of paragraph 4.4 omitted, vide circular no. FMRD.FMD.No.01/14.01.006/2025-26 dated May 08, 2025 iv The words “including the short-term limit, concentration limit” in clause (v) of paragraph 5.4 omitted, vide circular no. FMRD.FMD.No.01/14.01.006/2025-26 dated May 08, 2025 vi