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Over 700 new FPIs registered with Sebi in April-July

This indicates that India remains an attractive destination for foreign portfolio investors

Press Trust of India  |  New Delhi 

Over 700 new FPIs registered with Sebi in April-July

More than 700 fresh (FPIs) were registered with in the first four months of 2017-18, indicating that remains an attractive destination, latest data from the regulator showed.

This comes on top of close to 3,500 new registering with in the previous financial year.


According to data, the number of with the regulator's approval rose to 8,511 at the end of July 2017, from 7,807 at March-end, an addition of 704.

Besides, foreign investors have pumped in more than Rs 1 lakh crore into the Indian capital -- equity and -- during the period under review. This included Rs 84,000 crore in debt, with the remaining in equities.

consider as a preferred and stable market, given its macroeconomic stability, long-term growth prospects and ongoing economic reforms, experts said.

Furthermore, several measures taken by the Securities and Exchange Board of (Sebi) heightened its attractiveness, they added.

According to Vidya Bala, head of MF Research at Fundsindia.com, new registration of could be attributed to relative opportunities or better prospects of growth in the Indian compared to other emerging and developed nations.

In June, the board of decided to ease the entry norms for overseas investors by permitting direct access to from eligible jurisdictions.

Recently, raised FPIs' investment limit for government debt, permitted them to invest in unlisted corporate as well as securitised instruments and allowed direct entry to well-regulated foreign investors to invest in

Going ahead, Himanshu Srivastava, Senior Research Analyst and Manager Research at Morningstar, said geopolitical risk is the major factor that may have adverse impact on FPIs' participation.

"If the tension between the US and North Korea continues or aggravates, this will increase the geopolitical risk and in that condition, the participation will become lower," he added.

In a big revamp, in 2014 released norms that clubbed different categories of foreign investors into a new class called They have been divided into three categories as per their risk profile and (know your customer) requirements while other registration procedures have been made simpler for them.

They are granted permanent registration as against the earlier practice of approval granted for one or five years to overseas entities seeking to invest in Indian The registration remains permanent unless suspended or cancelled by or surrendered by an FPI.

First Published: Wed, September 27 2017. 14:33 IST
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