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FPI

About FPI

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What is FPI

Foreign portfolio investment (FPI) is a common way to invest in overseas economies. It includes securities and financial assets held by investors in another country. 
 
Securities (in FPI) include stocks or American Depositary Receipts (ADRs) of companies in nations other than the investor's nation. It also includes bonds or other debt issued by these companies or foreign governments, mutual funds, or exchange-traded funds (ETFs) that invest in assets abroad or overseas.
 
On a macro-level, foreign portfolio investment is part of a country’s capital account and shown on its balance of payments (BOP). BOP calculates the amount of money flowing from one country to other countries over a financial year.
 
FPI is relatively liquid depending on market volatility. 
 
Who invests through FPI?
 
Individual investors interested in opportunities outside their own country invest via FPI.  It does not give investors direct ownership of a company's assets.
 
What is surcharge?
 
Surcharge is an additional charge or tax.
 
What is FPI surcharge?
 
In 2019, the government of India proposed an increase in the tax surcharge on such super-rich tax payers who earn more than Rs 2 crore a year. While doing so, government included all the individuals and association of persons (AOPs) under the purview of the increased surcharge. Hence, they were to be subjected to the higher tax surcharge if they earned over Rs 2 crore of income a year. The move spooked investors as the surcharge would have impacted 40 per cent of the FPIs.
 
However, on August 23, 2019, giving in to the demands of overseas investors, finance minister Nirmala Sitharaman removed enhanced surcharge on FPIs.
 

Latest Updates on FPI

Both indices below 200-DMA; equity investor losses mount to Rs 18.4 trn in 5 days

Updated On: 20 Dec 2024 | 11:57 PM IST

Starting January, Bloomberg will include India's bonds in its indices which is expected to further boost inflows in debt.

Updated On: 20 Dec 2024 | 3:28 PM IST

Overseas investors pull out Rs 8,000 crore this week amid rupee slide

Updated On: 18 Dec 2024 | 11:16 PM IST

The surge in IPO activity comes after a slowdown triggered by poor listings, weak demand, foreign portfolio investor (FPI) outflows, and earnings disappointments

Updated On: 06 Dec 2024 | 11:24 PM IST

Asifma seeks shared responsibility for AI-related breaches

Updated On: 06 Dec 2024 | 10:55 PM IST

November's decline in FAR securities inflows was influenced by the rise in US yields, the dollar's strengthening, and the "Trump trade"

Updated On: 05 Dec 2024 | 11:28 PM IST

Pumped money into financial services and IT, while redeeming investments from oil and gas, and auto stocks

Updated On: 05 Dec 2024 | 11:20 PM IST

After declining 494 points, or 0.6 per cent, in opening trade, the Sensex ended the session at 80,248, gaining 445 points, or 0.6 per cent

Updated On: 02 Dec 2024 | 10:29 PM IST

Relentless selling by FPIs, disappointing earnings growth during the second quarter, and a rising US dollar have taken the wind out of the sails for secondary share sales

Updated On: 02 Dec 2024 | 11:01 PM IST

The Sensex, the Nifty Midcap 100 and the Nifty Smallcap 100 indices managed to eke out marginal gains for the month

Updated On: 29 Nov 2024 | 11:36 PM IST

IT, auto stocks see steepest fall, 5 Adani group firms settle higher

Updated On: 28 Nov 2024 | 10:53 PM IST

The rupee closed at 84.4850 against the U.S. dollar, down from its close of 84.4525 in the previous session

Updated On: 28 Nov 2024 | 4:12 PM IST

According to the data, FPIs recorded a net outflow of Rs 26,533 crore so far this month (till November 22). This came following a net withdrawal of Rs 94,017 crore in October, which was the worst

Updated On: 24 Nov 2024 | 10:53 AM IST

Sebi also found that Wilmington Trust Collective Investment Trust made fresh purchases before the completion of additional KYC requirements without holding a valid registration certificate

Updated On: 21 Nov 2024 | 7:51 PM IST

According to Sebi's settlement order, there were several alleged violations of the FPI regulations and intermediary regulations

Updated On: 18 Nov 2024 | 8:45 PM IST

No immediate relief expected amid shrinking US-India bond yield spread, subdued earnings

Updated On: 16 Nov 2024 | 12:03 AM IST

Proposes to raise net worth criteria for the first time in nearly three decades

Updated On: 13 Nov 2024 | 8:10 PM IST

Move to open the door for higher exposure in startups, mid-size firms

Updated On: 13 Nov 2024 | 10:38 PM IST

Avoids sharp depreciation on RBI's intervention

Updated On: 11 Nov 2024 | 11:08 PM IST

Currently, an investment made by foreign portfolio investor along with its investor group (FPI) should be less than 10 per cent of the total paid-up equity capital on a fully diluted basis

Updated On: 11 Nov 2024 | 4:31 PM IST