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This Circular permits eligible non-resident investors, subject to certain terms and conditions, to invest in Infrastructure Debt Funds (IDF) as shown in tabular form on next page: The original/initial maturity period of the securities must be 5 years with a lock-in period of 3 years. However, transfer between eligible nonresident investors is permitted during this period.
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Eligible instruments/securities for non-resident investment in IDFs |
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Eligible non-resident investor |
Eligible instruments |
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(i) |
SEBI-registered eligible non-resident investors |
Foreign currency and Rupee denominated bonds and |
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in IDF — Sovereign Wealth Funds, Multilateral |
rupee denominated units issued by IDF |
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Agencies, Pension Funds, Insurance Funds and |
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Endowment Funds |
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(ii) |
SEBI-registered FII who qualify as (i) above |
Foreign currency and Rupee denominated bonds and rupee denominated units issued by IDF |
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(iii) |
SEBI-registered FII who do not qualify |
as |
(i) |
Rupee denominated bonds and units issued by IDF |
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above |
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(iv) |
NRI |
Rupee denominated bonds and units issued by IDF |
Investments by non-residents, other than NRI, must be within the overall cap/limit of US $ 10 billion within the overall cap of US $ 25 billion for FII investment in bonds/non-convertible debentures issued by Indian companies in the infrastructure sector or by infrastructure finance companies. There is no cap/limit on NRI investment IDF by way of Rupee denominated bonds/units. Foreign currency denominated bonds must comply with the External Commercial Borrowing guidelines/regulations.
