WHAT IS FPI

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.
FPI NEWS
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At Rs 2.74 trillion, FPI flows surpass previous best in FY13: Govt
Policy initiatives and economic revival boosted foreign investment, says finance ministry| April 06, 2021, Tuesday -
FPIs increase exposure in Tata Steel, SAIL on surge in steel prices
In Tata Steel, FPI holding was up by 5.69% and in SAIL by 0.93% between October and December; in JSPL and JSW Steel, it was ...| April 05, 2021, Monday -
FPIs pull out Rs 7,013 cr from Indian markets so far this month
The dollar index climbing above 92 and firmness in US 10-year bond yield impacted sentiments which may be seen as profit-booking ...| March 14, 2021, Sunday -
Rupee appreciates 25 paise amid rising FPIs, declining bond yields
Currently, rupee is trading at 72.66 per dollar, against the previous close of 72.91 per dollar| March 12, 2021, Friday -
Covid impact: Sebi may give overseas roadshow a miss, again
The regulator typically meets overseas investors in the US and UK in the first half of a financial year, and had opted for a ...| March 10, 2021, Wednesday -
Spurred by Budget, FPIs invest Rs 25,787 cr in Indian equities in Feb
The total net FPIs in 2020 now stand at Rs 45,260 crore, as per NSDL data| February 28, 2021, Sunday -
FPIs invest Rs 22,038 crore in February so far amid post-Budget cheer
The government''s efforts in the Budget to bring the economy back on track have been lauded by investors, he added| February 14, 2021, Sunday -
India only emerging market to get equity FPI inflows in 2020: Eco Survey
The country attracted $30 billion in the first nine months of the year| January 29, 2021, Friday -
FPIs remain net buyers with 18,456 crore investment in Jan so far
Overseas investors pumped in Rs 24,469 crore into equities but pulled out Rs 6,013 crore from the bonds market between January ...| January 24, 2021, Sunday -
FPIs invest Rs 62,016 crore in equities in Dec; remain top net buyers
For the equity segment, this is the highest quantum of money invested ever since the FPI data has been made available by the ...| January 03, 2021, Sunday