Market players said the higher limits have potential to attract billions in overseas flows but it may not play out immediately
Meanwhile, foreign portfolio investors (FPIs) have pulled out net of Rs 55,007 crore (approx. $7.4 billion) from Indian equities in March 2020
Experts believe foreign investors are withdrawing from riskier assets and are opting for safe heavens like dollar-denominated asset classes and gold
Prior to this, foreign investors were net buyers for six consecutive months since September 2019
In a statement on its website, the RBI said it was doing the swaps in view of the intense selling pressure witnessed worldwide on 'extreme risk aversion due to the spread of COVID-19 infections'
According to depositories data, FPIs withdrew a net Rs 8,997.46 crore from equities and Rs 4,159.66 crore from the debt segment during March
At present, all FPIs under category-II are subject to transfer provisions which impacts close to 20 per cent of FPIs
The 2019 operating guidelines for FPIs also prescribe a separate registration for proprietary derivative investments and ODI activities of an FPI
Investors on Monday were caught off-guard by the sharp selloff in stocks amid an increase in COVID-19 cases in countries, such as South Korea, Italy, and Iran
The inflow through P-notes in December was the lowest since February 2009, when the cumulative value of such investments stood at Rs 60,948 crore.
The key issue vexing the custodians is the requirement to fill in tax details on behalf of FPIs, an area where they lack expertise and which is currently handled by the tax consultants
Of the total investments made till the end of November, Rs 52,486 crore was invested in equities, Rs 11,415 crore in debt and Rs 636 crore in the derivatives segment
FPIs have been net buyers in the Indian markets since September 2019, the data showed.
This comes following a net outflow of $3.22 billion by foreign portfolio investors (FPIs) in the quarter ended September 2019
Foreign portfolio investors (FPI) put in Rs 6,350crore in the debt segment between February 3-7, the data showed
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The norms for FPI investments in InvITs were relaxed in the July 2019 Budget session
Positive developments on US-China trade deal front led to renewed buying interest by the FPIs
There is fear that the RBI has no wiggle room for further rate cuts. Without rate support, yields will rise. This translates into a fall in prices for bonds
Experts believe the lower tax rate is a significant contributor in making India's debt market attractive to overseas investors