Recently RBI has permitted FPIs to acquire debt

Solution

FPIs can acquire debt securities issued by InvITs and REITs under the Medium-Term Framework (MTF) or the Voluntary Retention Route (VRR). Voluntary Retention Route (VRR) is a special channel of investment available to SEBI registered FPIs to encourage them to invest in debt markets in India over and above their investments through the regular route. The objective is to attract long-term and stable FPI investments into debt markets while providing FPIs with operational flexibility to manage their investments. Minimum Retention Period – 3 years; Minimum 75% of allocated amount to be maintained in India by the FPI