Consider the following statements regarding recent RBI

Solution

• Statement 1: Correct. The RBI has scrapped the short-term investment limit for FPIs in corporate debt securities. This makes it easier for FPIs to participate without maturity-linked restrictions. • Statement 2: Incorrect. The earlier rule was not 25% but 50% cap, i.e., FPIs (including related entities) could not invest more than 50% of any single corporate debt issue. • Statement 3: Correct. The reform is explicitly intended to deepen India’s corporate bond market and attract more stable foreign investment, particularly at a time when inflows have been volatile. Hence, the correct answer is 1 and 3 only.