Madhya Pradesh

GS III: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment.

Eclectic FPI mix drives Indian Equities

What is Foreign Portfolio Investment?

Foreign Portfolio Investment (FPI) is investment by non-residents (NOT Non Resident Indians) in Indian securities including shares, government bonds, corporate bonds, convertible securities, infrastructure securities etc.
Investment by a foreign portfolio investor cannot exceed 10 per cent of the paid up capital of the Indian company. All FPI taken together cannot acquire more than 24 per cent of the paid up capital of an Indian Company.
While above this the investment will be counted as Foreign Direct Investment (FDI)
As per SEBI regulations, FPIs are not allowed to invest in unlisted shares and investment in unlisted entities will be treated as FDI.
Foreign Portfolio Investors includes investment groups of Foreign Institutional Investors (FIIs), Qualified Foreign Investors (QFIs) (Qualified Foreign Investors) and subaccounts etc.
NRIs don’t comes under FPI.