SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

RBI proposes to allow foreign investors to hedge currency risk in India

02 Apr 2014 Evaluate

Stepping up efforts to make the Indian markets more attractive to global investors, the Reserve Bank of India (RBI) has proposed to allow overseas investors to hedge their currency risk in local exchanges, a move which will lower entry costs for foreigners and help to improve risk mitigating environment in the country. At present, the RBI is in final discussion with market regulator Securities and Exchange Board of India (Sebi) to finalise the proposal.

The central bank proposed to permit foreign investors to hedge the coupon receipts on domestic bond holdings for up to the next 12 months. Further, to flush out yield-chasing, the RBI has planned to bar short-term investors from investing in treasury bills, where most of the foreign money has rushed in recently. The RBI’s notification further stated that in order to encourage longer-term flows and reduce volatility foreign portfolio investments in government securities will henceforth be permitted only in dated securities of maturity more than one year.

The RBI further added that any investment limit for overseas investors vacated at the shorter end will be available at longer maturities, so overall foreign portfolio investor (FPI) limits will not be diminished. So far this year, foreign investors have invested up to $5.76 billion in Indian securities particularly short-term treasury bills. Foreign investors can invest up to $30 billion in government papers, out of which investment limit for treasury bills is $5.5 billion. Overseas investors have exhausted 87.16% of their treasury bills limit.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×