The Reserve Bank of India has proposed new guidelines capping regulated entities’ (RE) investments in Alternative Investment Funds (AIFs) at 15% of total lender investment. While unrestricted investments up to 5% of an AIF’s corpus are permitted, exceeding this limit and having downstream debt exposure triggers a 100% provisioning requirement.
FPIs bet small on local debt, inflow pickup seen far away
April witnessed a slight inflow of foreign investments into Indian debt, but the atmosphere remains one of caution. Influences like escalating US and Japan interest