What is FPI

FPI

What is FPI
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

FPI selling, liquidity deficit tightening financial conditions: CRISIL

2 min read Last Updated :Feb 21 2024 | 7:46 PM IST
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Shifting paradigms: Retail shuffle meets FPI market drive, shows data

2 min read Last Updated :Feb 18 2024 | 9:49 PM IST
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Bond inclusion unlikely to trigger volatility: Ashima Goyal of RBI MPC

3 min read Last Updated :Feb 16 2024 | 10:38 PM IST
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Overseas funds pullout exceeds $3 bn in Jan amid geopolitical uncertainty

3 min read Last Updated :Jan 31 2024 | 10:48 PM IST
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HDFC Bank-led FPI selloff: The fifth-highest weekly exit since 2008

3 min read Last Updated :Jan 22 2024 | 11:10 PM IST
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We need to be mindful of responsible pricing: Kotak Investment Banking CEO

5 min read Last Updated :Jan 10 2024 | 11:08 PM IST
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Tamil Nadu govt's 3rd Global Investors Meet set to begin on January 7

3 min read Last Updated :Jan 06 2024 | 5:36 PM IST
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Record monthly FPI buying in December drives Nifty 50 to record highs

2 min read Last Updated :Jan 04 2024 | 5:06 PM IST
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Better risk-reward, FPI flows augur well for LargeCap MFs in 2024: Analysts

4 min read Last Updated :Jan 02 2024 | 10:59 PM IST
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Health, EV, fintech: Key industries beckoning foreign investors in 2024

4 min read Last Updated :Jan 01 2024 | 11:16 PM IST
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FPI gross purchases hit a high in 2023 on strong earnings, economic growth

3 min read Last Updated :Dec 25 2023 | 10:04 PM IST
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Investor sells 4.5% stake worth Rs 1,281 cr in Apollo Tyres by block deal

1 min read Last Updated :Dec 19 2023 | 8:35 PM IST
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Sharp improvement in liquidity expected from January 2024: India Ratings

2 min read Last Updated :Dec 14 2023 | 9:32 PM IST
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Forex reserves surpass $600-billion mark after nearly four months

2 min read Last Updated :Dec 08 2023 | 2:09 PM IST
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FPIs infuse Rs 9,000 crore in equities in Nov, inflow in debt at 6-yr high

3 min read Last Updated :Dec 03 2023 | 11:20 AM IST
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NRIs likely to get bigger play in local equities through GIFT City FPIs

4 min read Last Updated :Nov 24 2023 | 10:44 PM IST
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FPI investment value in Indian equities rises 15% to $651 bn in Sep qtr

3 min read Last Updated :Nov 16 2023 | 5:16 PM IST
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Financial stocks account for 50% of FPI selloff in second half of October

2 min read Last Updated :Nov 08 2023 | 10:41 PM IST
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FPI net investment in debt market in October third highest in CY23

4 min read Last Updated :Nov 05 2023 | 10:43 PM IST
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NSE equity cash, derivatives segment turnover sees first fall in 12 months

2 min read Last Updated :Nov 01 2023 | 11:52 PM IST
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