The Direction specifies the categories of permissible debt instruments and applicable limits for foreign investments in Government securities, corporate bonds, and other debt instruments. It also defines conditions for investment under the Fully Accessible Route (FAR), Medium-Term Framework (MTF), and Voluntary Retention Route (VRR).
Key updates up to October 2025 include:

• Clarification on eligible instruments under VRR and FAR.
• Revised reporting mechanism for authorised dealer banks regarding non-resident investments.
• Streamlined procedures for transfer and settlement of debt securities held by non-residents.
• Compliance provisions for designated depositories and custodians to ensure adherence to RBI limits and monitoring requirements.