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What is the proposed foreign portfolio investor (FPI) limits in corporate bonds as per Budget 2020?1. 11 per cent of outstanding stocks2. 9 per cent of outstanding stocks3. 12 per cent of outstanding stocks4. 15 per cent of outstanding stocks

Answer» Correct Answer - Option 4 : 15 per cent of outstanding stocks

The correct answer is 15 percent of outstanding stocks.

  • 15 percent of outstanding stocks is the proposed foreign portfolio investor (FPI) limits in corporate bonds as per Budget 2020.
  • As per the recent notification of the Reserve Bank of India (RBI), the limit for the investment of foreign portfolio investors (FPI) in corporate bonds is hiked to 15% of outstanding stock for FY 2020-21.
  • FPIs can invest Rs 3.17 lakh crore in Indian corporate bonds, at present.
  • The government plans to increase the investment limit of foreign portfolio investors (FPI) in corporate bonds from 9 percent to 15 percent, Finance Minister Nirmala Sitharaman.

  • Foreign portfolio investment or FPI is a form of investment wherein investors hold assets and securities outside their country.
  • These investments could include stocks, bonds, exchange-traded funds (ETFs), or mutual funds.
  • It is one way in which an investor can partake in a foreign economy. 


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