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Fully Accessible Route (Source: The Hindu)

Context:

Foreign Portfolio Investors invested ₹8,794 crore in government securities under the Fully Accessible Route after tax exemptions on interest income and capital gains.

About Fully Accessible Route:

  • Fully Accessible Route is a channel through which non-residents can invest in specified Government Securities.
  • It was introduced by the Reserve Bank of India in 2020.
  • Under FAR, eligible government securities are opened fully to Foreign Portfolio Investors.
  • Investments under FAR are not subject to the usual investment limits applicable to FPIs in government securities.
  • It covers specified Central Government securities notified by the RBI from time to time.
  • FAR helped enable the inclusion of Indian government bonds in major global bond indices.
  • It supports deeper bond markets by attracting foreign capital into India’s government securities market.

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