MUMBAI, July 29 Reuters All new Indian government bonds with a 14year and 30year tenor will no longer be accessible to foreign portfolio investors FPIs under the fully accessible route, the central bank said in a release on Monday.

Consequently, future issuances of government securities in these tenors shall not be available for investment under the Fully Accessible Route FAR, the Reserve Bank of India said, adding that the decision was taken in consultation with the government.

Existing 14year and 30year debt, however, which was already specified as securities that were available under the FAR will continue to be accessible to nonresidents for investments in the secondary market, it added.

Investments by FPI39;s in the new 14year and 30year tenors will be as per the existing investment limits prescribed by the RBI, applicable at the point of issuance.

The new directions come into effect immediately, the central bank said.

Foreigners currently hold around 1 billion worth of the existing 30year bonds, latest data shows.

This should not have any major negative impact, as government has already stopped issuing 14year securities, while we do not see large investments piling up in the 30year segment, a trader with a foreign bank said.

Reporting by Swati Bhat and Dharamraj Dhutia

Source Reuters