The Reserve Bank of India (RBI) vide Circular No. RBI/2022-23/87 A.P. (DIR Series) Circular No.07 dated July 07, 2022 issued “Investment by Foreign Portfolio Investors (FPI) in Debt-Relaxations”In reference to the press release on “Liberalisation of Forex Flows” dated July 06, 2022 and the FEM (Debt Instruments) Regulations, 2019 and A.P. (DIR Series) Circular No.31 dated June 15, 2018 (Directions)In terms of paragraphs 4(b)(i) and 4(b)(ii) of the Directions, short-term investments by an FPI in government securities (Central Government securities, including Treasury Bills and State Development Loans) and corporate bonds shall not exceed 30% of the total investment of that FPI in any category. It has been decided that investments by FPIs in government securities and corporate bonds made between July 08, 2022 and October 31, 2022 (both dates included) shall be exempted from the limit on short-term investments till maturity or sale of such investments.In terms of paragraph 4(b)(ii) of the Directions, FPI investments in corporate bonds were subject to a minimum residual maturity requirement of one year. It has been decided to allow FPIs to invest in commercial papers and non-convertible debentures with an original maturity of up to one year, during the period between July 08, 2022 and October 31, 2022 (both dates included). These investments shall be exempted from the limit on short-term investments till maturity or sale of such investments.These directions shall be applicable with immediate effect.