These warnings came after an August 2023 circular in which Sebi tightened beneficial ownership norms
The share of US-based FPIs was pegged at 31.04 percent in the June quarter, overtaking Singapore whose share was 28.11 percent of the cumulative FPI holdings in the country, as per data from primeinfobase.com. In the previous quarter — as on March 31 — Singapore was marginally ahead of the US.
Moneycontrol analysis shows that in the recent past, whenever FPIs sold in big amounts, capital gains tax collection has risen
Several FPIs are using these platforms to find counterparties for trades
The regulator issued the circular on December 17
FPIs were net buyers till September 9, 2024, which was the crucial deadline; after that date, FPIs were largely compliant, said sources
The FPI Outreach Cell has been launched as part of the Alternative Investment Fund and Foreign Portfolio Investors Department (AFD).
And DIIs took it all, with Rs 9,000 crore worth purchases in equities.
For relocation, a Foreign Portfolio Investor (FPI) or its wholly-owned special purpose vehicle may approach its Designated Depository Participants (DDP) for approval of a "one-time 'off-market' transfer of its securities to the 'resultant fund'.
Foreign investors had pulled out Rs 9,659 crore in April after infusing money in the preceding six months, according to the depositories' data.
Between April 1-24, foreign portfolio investors (FPI) pulled out a net sum of Rs 6,822 crore from equities and Rs 3,525 crore from the debt segment, depositories data showed.
The recommendations of the Khan Committee on FPIs include fast-tracking the registration process for select category II FPIs.
The exemption covers category I & II investors registered with the Securities and Exchange Board of India.
Foreign investors have pulled out over Rs 3,800 crore from the country's equity markets so far this month over concerns regarding "lower prospects" of economic growth as compared to other emerging markets.
According to the data available with Sebi, the total value of P-Notes investment in Indian markets -- equity, debt and derivatives -- fell to Rs 1,79,648 crore in November-end, from Rs 1,99,987 crore at the end of October.
The report by ICICI Securities noted that volatility in foreign portfolio investor (FPI) flows has returned after seven months and could continue in the third quarter.
The listed funds -- passive exchange-traded funds (ETFs) and active non-ETFs -- generally account for a large part of foreign portfolio investor (FPI) activity in India.
As per the data compiled by the depositories, net outflow in equities stood at Rs 6,616 crore in November, while it was Rs 3,207 crore from debt, translating into a total of Rs 9,823 crore (USD 1.5 billion).
Overseas investors have pulled out more than USD 1 billion from the Indian capital markets since the beginning of the month due to lacklustre quarterly earnings and concerns over a possible rate hike by the US Federal Reserve.
Vivek Rajpal of Nomura gives his views on the bond market and the Indian currency. He expects the rupee to be an outperformer.
V Anantharaman, MD of Standard Chartered Bank, South Asia, says in times of volatility, fund flows are always from emerging markets to developed markets.
Overseas investors have pumped in a staggering amount of over Rs 1 lakh crore into the Indian stock market since the beginning of the year, primarily on account of government's reform agenda.
Here onwards ODIs can be issued only to an investor who is a resident in a country which is 1) FATF compliant where the 2) securities market regulator is an IOSCO signatory 3) the central bank is a BIS member.
Going forward, Anand Rengarajan of Deutsche Bank feels the treatment for FPIs would be the same as the current treatment for FII sub-accounts.
The guidelines, which are part of the newly notified Foreign Portfolio Investor (FPI) Regulations, have come into force with immediate effect. They provide for stricter oversight of P-Notes, the preferred route for overseas high net worth individuals (HNIs) and hedge funds for investing in the Indian market.