FPIs had pulled out over Rs 210 bn from the capital markets (both equity and debt) in September. Before that, foreign investors had put in Rs 75 bn in July and August
Further, upcoming elections in India and escalating trade war tensions between the US and China too blemished the outlook of equities in emerging markets like India
Among IT stocks, Zensar Technologies (9.7 percentage points), HCL Technologies (1.8 percentage points) and L&T Infotech (1.6 percentage points) saw their holding rise the most in percentage terms
The value of holdings of FPIs and MFs dropped 9.4% and 8.3%, respectively, during the September quarter
FPI, according to analysts, have been more nervous as regards the debt market given the sliding rupee, fiscal and current account deficits.
Several global funds oppose restrictions on NRIs, PIOs
Currently, FPIs are subject to a KYC review as and when there is any change in material information or disclosure
The number of FPIs with the markets regulator climbed to 9,136 at the end of March this year from 7,807 a year ago, resulting in an addition of 1,329 according to Sebi data
Shares worth Rs 92 bn available from today for global funds
Market experts believe that weak rupee, uncertainty over global crude prices as well as US-China trade relations have affected sentiment among foreign investors
Interest income attracts a concessional tax rate of 5%, against 15-20% in case of capital gains
These proposals would be discussed at the board meeting of Sebi tomorrow
According to the medium-term framework of the government, the limit for both central and state bonds will go up from January.
Foreign investors have pumped in Rs 1.15 lakh crore into the Indian capital markets
This country's General Anti Avoidance Rules (GAAR) on tax payments and the government's recent signing of the Multilateral Instrument (MLI) in this regard, as part of measures to prevent base erosion and profit shifting (BEPS), has already had some effects.These appear to have dissuaded foreign portfolio investors (FPIs) from shifting to European jurisdictions such as France, Spain and the Netherlands as envisaged earlier. Until April 1, FPIs took the Mauritius, Singapore or Cyprus routes to pool money from investors across the globe and invest in India. The earlier treaties we signed, amended in 2016, allowed for taxation of capital gains earned in India to be subject to tax only in the other country. Since these countries did not charge tax on capital gains, FPIs remained out of the net.Short-term capital gains in India are taxed at 15 per cent; long-term gains are exempt.FPIs that did not want their returns to get impacted from these treaty amendments were actively scouting for ...
This comes on top of close to 3,500 new foreign portfolio investors (FPIs) registering with Sebi in the past financial year
Interestingly, most of the funds have been infused in the debt markets
FPIs bid for investment limits in government debt securities to the tune of Rs 7,816 cr as against Rs 4,954 cr on offer
FPIs pulled out Rs 1,775 crore ($272 million) from equities during this period
India's macroeconomic indicators no longer seem appealing