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News– Despite selling heavily in the Indian stock market, foreign investors have invested over Rs 51,730 crore ($6 billion) in Indian bonds through the Fully Accessible Route (FAR) since January. Fully Accessible Route (FAR)
About Fully Accessible Route (FAR)
- FAR Bonds refer to Indian government securities designated under the Fully Accessible Route, which allows foreign investors unrestricted access to invest in these bonds without any investment caps.
- Introduced in: The RBI introduced this route in March 2020 to increase foreign participation in India’s bond market.
- Objective: To enable non-residents to invest in specified Government of India dated securities.
- Eligible investors: Foreign Portfolio Investors (FPIs), Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and other entities permitted by the RBI can invest in government securities under the FAR route.
- Investment limits: Eligible investors can invest in specified Government securities without being subject to any investment ceilings.
- Significance:
- They play important role in India’s integration with global financial markets.
- In June 2024, JP Morgan added 29 Indian government securities under the FAR programme to its widely followed Emerging Market Bond Index (EMBI).
