Foreign Portfolio Investors (FPIs) are eligible to be categorized as non-retail users and have been allowed to buy and sell CDS (Credit default Swaps) protection under the Credit Derivatives Directions by RBI. The aggregate limit of the notional amount of CDS sold by FPIs shall be _____.

Foreign Portfolio Investors (FPIs) are eligible to be categorised as non-retail users and have been allowed to buy and sell CDS protection under the Credit Derivatives Directions. Necessary Directions to Authorised Persons that are eligible to deal with FPIs for transacting in Credit Derivatives in terms of the Credit Derivatives Directions are being issued hereunder: 1.    Selling of CDS protection by all FPIs shall be subject to an aggregate limit specified by the Reserve Bank. The aggregate limit of the notional amount of CDS sold by FPIs shall be 5% of the outstanding stock of corporate bonds 2.    FPIs shall not sell any CDS protection once the aggregate limit is utilized. The limit utilized for CDS protection sold by the FPI shall be released upon the exit of the CDS position by the FPIs