FPI registrations decline as coronavirus pandemic hits market sentiment

The pandemic erased more than $18 trillion from global markets over the course of February and March 2020, before a recovery in April and the subsequent months

The Covid-19 pandemic has taken a toll on foreign portfolio investor (FPI) registrations in the June quarter, with investors putting their plans on hold amid the prevailing uncertainty.

New monthly registrations averaged more than 100 this year until April, before dipping to 17 and 35 in May and June, respectively. In July, it showed some improvement with the first two weeks seeing 28 registrations, data from Prime Database shows. Possibly, clearance of pending applications made 2-3 months ago led to the higher number in March.

According to experts, work from home, volatility in stock markets worldwide, and redemption pressures compelled investors to