The Fully Accessible Route (FAR) was introduced by the Reserve Bank of India (RBI) in 2020 to allow non-resident investors to invest in specified Government of India securities (G-Secs) without any investment restrictions.
Key Features of FAR:
1) No Investment Limit: Unlike regular Foreign Portfolio Investment (FPI) routes, FAR does not impose any upper cap on foreign holdings in designated securities.
2) Objective: This framework aims to increase foreign participation in India's sovereign bond market and facilitate India's inclusion in global bond indices.
3) Eligible Securities: RBI notifies certain G-Secs (long-term bonds) that are fully accessible to foreign investors.
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