Master Direction on Non-resident Investment in Debt Instruments, 2025

Act Name/Rule Name: Reserve Bank of India Act, 1934

Applicable Rule/Section:

Section 6, read with Section 47 of Foreign Exchange Management Act, 1999 (FEMA),

Notification No. FEMA 1/2000-RB of Foreign Exchange Management (Permissible Capital Accounts Transactions) Regulations, 2000,

Notification No. FEMA 3(R)/2018-RB of Foreign Exchange Management (Borrowing and Lending) Regulations, 2018,

Notification No. FEMA. 396/2019-RB of Foreign Exchange Management (Debt Instruments) Regulations, 2019

Type of Document: Master Direction

Date: 07 January 2025

Circular No./Notification No.: RBI/2024-25/126 FMRD.FMD.No.10/14.01.006/2024-25

This Master Direction issued by the Reserve Bank of India (RBI) consolidates previous circulars and directions issued under the Foreign Exchange Management Act (FEMA) to regulate non-resident investment in debt instruments in India. The directions have been issued under the powers conferred by Sections 10(4) and 11(1) of FEMA, 1999, and Section 45W of the Reserve Bank of India Act, 1934.

Key points include:

  • The RBI consolidates prior A.P. (DIR Series) Circulars and other related directions under this Master Direction.
  • The direction pertains to non-resident investments in debt instruments, including foreign exchange investments.
  • This Master Direction outlines provisions and clarifications related to non-resident investment in debt instruments governed by the earlier notifications of FEMA and other regulations.

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