Foreign portfolio investors have infused a net sum of 1,624 crore rupees into the domestic capital markets in January so far. As per latest depositories data, Foreign portfolio investors put-in a net of 13,304 crore rupees, in equities and withdrew a net 11,680 crore rupees from the debt segment between January 1 and 24. This translates into a total net inflow of 1,624 crore rupees.
Meanwhile, non-resident Indians (NRIs) will soon be able to invest in Indian markets as foreign portfolio investors (FPIs). The Securities and Exchange Board of India (Sebi) is planning to create a third category of investors under the current FPI regime for NRIs to invest in the local markets, said two people aware of the development.
The move will enable greater participation of NRIs in the Indian markets as investment limits in listed companies will rise sharply. NRIs will also be able to trade in Indian markets with greater ease since they will be now able to invest through custodian banks. The development is part of the central government’s plan to merge the existing NRI route with the FPI regime as announced in the FY20 interim budget.
NRIs currently invest in India through the portfolio investment scheme (PIS) route, which is regulated by the Reserve Bank of India (RBI). Under the new mechanism, the market investments of NRIs will be effectively governed by Sebi. Even though Sebi had proposed such a merger of routes in September 2018, it could not be implemented due to reservations expressed by the RBI.