Circular No. A.P. (DIR Series) Circular No. 06, Dated 10.04.2026
The Reserve Bank of India (RBI) has issued amendments to the Master Direction on Non-resident Investment in Debt Instruments, 2025, updating the regulatory framework governing such investments.
1. Objective of the Amendment
The amendment aims to:
- Consolidate existing instructions relating to investments by Non-Resident Indians (NRIs)
- Provide clarity on the use of debt instruments as collateral
- Streamline regulatory provisions for better compliance and operational efficiency
2. Key Clarifications
2.1 Investments by NRIs
- The circular consolidates guidelines relating to Permissible investments by NRIs in debt instruments
- Ensures a clear and unified framework for such investments
2.2 Use as Collateral for Derivative Transactions
Provides clarity on:
- Use of debt instruments as collateral
- Specifically for exchange traded derivative transactions
This enhances flexibility while maintaining regulatory oversight.
3. Directions to Authorised Dealer Banks
Authorised Dealer (AD) Category-I banks are advised to:
- Take note of the revised instructions
- Inform their constituents about the changes
4. Regulatory Impact
The amendment is expected to:
- Improve clarity and consistency in regulatory interpretation
- Facilitate smoother investment and collateral usage
- Strengthen compliance across market participants
5. Conclusion
The RBI’s amendment reflects a move towards a more integrated and transparent framework for non-resident investments in debt instruments, supporting both market efficiency and regulatory clarity.
Click Here To Read The Full Circular
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