Facts for Prelims (FFP)
Source: BS
Context: The Reserve Bank of India (RBI) has announced that the Foreign Portfolio Investment (FPI) limits for investment in various securities will remain unchanged for the current fiscal year.
- The limits for FPI investment in government securities (G-sec), state development loans, and corporate bonds will be maintained at 6%, 2%, and 15% respectively, of the outstanding stocks of securities.
About G-sec:
G-Secs, or Government Securities, are tradable instruments issued by governments through auctions conducted by the RBI. They come in two types: short-term, known as treasury bills, with maturities of less than one year, and long-term, known as Government bonds or dated securities, with maturities of one year or more. The Central Government can issue both treasury bills and government bonds, while State Governments issue only government bonds, also known as State Development Loans (SDLs).
