Longerterm expectations, which are a measure of a central bank’s credibility, remain in line with the definition of price stability, while the risk of inflation being higher than the target for too long has gone down considerably compared with the peak of mid-2022 (Figure 8). Monetary tightening also affects credit dynamics.
15  49  27 13  FPI investment  01/03/2019  01/11/2018  01/07/2018  01/03/2018  01/11/2017  01/07/2017  01/03/2017  01/11/2016  01/07/2016  01/03/2016  01/11/2015  01/07/2015  01/03/2015  01/11/2014  01/07/2014  01/03/2014  01/11/2013  01/07/2013  01/03/2013  01/11/2012  10 01/07/2012  50 45 40 35 30 25 20 15 10 5 0  01/03/2012  USD billion  Chart 11: FPI investment in G-Secs vis-à-vis limit  Upper limit  Source: National Securities Depository Limited (NSDL), Clearing Corporation of India Limited (CCIL)  USD billion  Chart 12: FPI investment in corporate debt vis-à-vis limit 50 45 40 35 30 25 20 15 10 5 0  44  41  31 19  2012  2013  2014  2015  FPI investment  2016  2017  2018  2019  Upper limit  Source: National Securities Depository Limited (NSDL)  3.1.3 Strengthening the legal and regulatory framework for investor protection One of the most critical building blocks of market infrastructure is a proper legal framework which ensures investor protection by acting as a deterrent to market abuse and malpractices.