RBI vide notification no. RBI/2020-21/105 dated 26th February, 2021 has notified relaxations relating to investment by foreign portfolio investors (FPI) in defaulted bonds.
It has now been decided to exempt
investments by FPI in Non-Convertible
Debentures/bonds which are under
default, either fully or partly, in the
repayment of principal on maturity or
principal instalment in the case of
amortising bond.
https://www.rbi.org.in/Scripts/Notificatio nUser.aspx?Id=12037&Mode=0