The Reserve Bank of India (RBI) has decided to allow eligible non-resident investors to invest, on a repatriation basis, in rupee and foreign currency denominated bonds issued by the Infrastructure Debt Funds (IDFs) set up as non-banking financial companies.
Further, eligible non-residÂent investors can invest, on a repatriation basis, in rupee denominated bonds issued by IDFs which are set up as domestic mutual funds (MFs), the RBI said in its guidelines on foreign investments in IDFs.
Eligible investors in the IDFs include sovereign wealth funds, multilateral agencies, peÂnsion funds, insurance funds and endowment funds (all SEBI-registered eligible non- resident investors), foreign institutional investors, NRIs, and high networth individuals. All SEBI-registered eligible non- resident investors, SEBI-registered FIIs and HNIs can invest in foreign currency and rupee denominated bonds and rupee denominated units issued by IDFs. NRIs, however, can invest only in rupee denoÂminated bonds and units issued by IDFs. The original/initial maturity of all bonds at the time of first investment by an NRI investor will be five years.
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