Sebi lets FPIs help defaulters

Markets regulator Sebi on Tuesday allowed foreign portfolio investors to invest in newly launched products — REITs, InvITs and AIFs — and also permitted them to acquire corporate bonds under default.

All the investments by Foreign Portfolio Inves-tors (FPIs) in such bonds should be within the overall limit of '244,323 crore for foreign investment in corporate bonds.

“It has been decided to permit FPIs to invest in units of Real Estate Inv-estment Trusts (REITs), InvIts (Infrastructure Investment Trusts) and Category-III Alternative Investment Funds (AIFs),” Sebi said in a circular.

“FPIs shall be permitted to acquire NCDs/bonds, which are under default, either fully or partly, in the repayment of principal on maturity or principal installment in the case of an amortising bond,” the market regulator said.